Bank of England Split on Stimulus, BP to Sell Yacheng Gas Field

Arthi Gupta
19 Dec, 2012
New York City

The UK indexes extended global markets gains. BP plc agreed to sell its interest in the Yacheng gas field for $308 million. Balfour Beatty was awarded two major National Grid gas contracts valued at

[R]2:50 PM London – The UK indexes extended global markets gains. BP plc agreed to sell its interest in the Yacheng gas field for $308 million. Balfour Beatty was awarded two major National Grid gas contracts valued at £1.2 billion. Bunzl completed two acquisitions in Canada and Australia.[/R]

The benchmark index in London traded higher following the gains in European markets and higher closing in Asia.

Market sentiment was positive after the latest read on German business confidence showed an improvement and lawmakers in the U.S. narrowed differences in budget negotiations.

The Bank of England policymakers unanimously decided to hold the key interest rate at a record low 0.5%, but were split 8-1 on leaving the quantitative easing program unchanged at £375 billion, according to the minutes of the monetary policy meeting held on December 5 and 6.

In London, the benchmark index FTSE 100 gained 37.73 or 0.6% to 5,973.61 and the pound edged higher to $1.6286.

BP to Sell Yacheng Gas Field

BP plc agreed to sell 34.3% of its interest in the Yacheng gas field in the South China Sea to Kuwait Foreign Petroleum Exploration Co. for $308 million cash. Subject to regulatory, CNOOC and third party approvals, the deal may close in the second half of 2013.

Gainers & Losers

Accenture plc dipped 0.3% to $71.12 after the outsourcing company won a new five-year contract with Unilever to provide human resources business process outsourcing services.

Balfour Beatty plc fell 0.2% to 271.10 pence after the infrastructure services company was awarded two major National Grid gas contracts valued at £1.2 billion to upgrade the UK’s gas distribution network.

Bunzl plc slumped 3.5% to 1,028 pence after the outsourcing services provider acquired the business of McCordick Glove & Safety Inc in Canada and Atlas Health Care Pty Limited in Australia.

Halma plc gained 1.8% to 454.80 pence after the hazard detection products maker completed the acquisition of MicroSurgical Technology, Inc. for $57 million in cash in addition to a $2 million for cash retained in business.

Kingfisher plc climbed 0.4% to 278 pence after the home improvement retailer announced that its Chief Operating Officer Euan Sutherland is to resign from the Board.

WPP plc climbed 0.3% to 888.50 pence after the advertising company announced the completion of the sale of the freehold property at 285 Madison Avenue in New York for $189.25 million.