UK Stocks in 8-Day Rally; Galiform Surges

123jump.com Staff
22 Jul, 2009
New York City

UK stocks closed higher for the eight day in a row on optimism about global economic recovery and a steady rise in resource stocks. Galiform surged after it reported first half earning and suggested smaller decline in the second half. Euromoney issued cautious outlook.

[R]6:00 PM London, 1:00 PM New York – UK stocks closed higher for the eight day in a row on optimism about global economic recovery and a steady rise in resource stocks. Galiform surged after it reported first half earning and suggested smaller decline in the second half. Euromoney issued cautious outlook.[/R]

The benchmark index in UK increased for the eighth day in a row on rising commodities prices, optimism about U.S. economy and better than expected earnings of domestic companies.

In London FTSE 100 Index closed higher 12.56 or 0.28% to 4,493.73.

Gainers & Losers

BHP Billiton declined 1.8% to 1,502 pence despite the company reported quarterly production increase for twelve categories including metallurgical coal, energy coal, copper, iron ore, copper and others. Several brokers urged investors to sell stock after the stocks has run up more than 45% in the last thirteen weeks.

Euromoney Institutional Investor increased 4.9% to 232 pence after it reported revenues decline of 11% in the quarter ending in June to £84.2 million or a fall of 22% in constant currency. The company issued cautious outlook and said that subscription growth is declining as well. Nearly 70% of the group’s debt is denominated in U.S. dollars.

Galiform surged 24% to 46.50 pence, the parent of Howden Joinery and makers of kitchens said first half revenues declined 11% to £316.8 million and operating profit fell to £10 million. Earnings per share in the period were loss of 2 pence compared to profit of 2.4 pence in the period a year ago.

The company estimated sales decline at Howden in the initial period of the second half at 5.2% compared to decline of 8.3% in the first half.

Marston’s decreased 3% to 88.75 pence after 91% of shareholders backed the company’s cash call of £176 million which priced each share at 59 pence.

Sinclair Pharmaceuticals declined 6.7% to 24.25 pence after the company said that operating earnings are in-line with expectations but revenues are lower on wholesalers lowering the inventories.

FTSE 100 Index Movers

Of the stocks in the FTSE 100 index, 65 increased, 33 declined and 4 were unchanged.

Lonmin Plc decliners in the FTSE 100 index with a loss of 3.15% followed by losses in Barclays Plc of 3.14%, in Aviva Plc of 2.24%, in Kazakhmys Plc of 2.12%, in BHP Billiton Plc of 1.80%.

Shire Plc led gainers in the FTSE 100 index with a rise of 3.96% followed by increase in Next Plc of 3.28%, in Reed Elsevier Plc of 3.20%, in TUI Travel Plc of 3.00%, in Imperial Tobacco Group Plc of 2.70%.

Europe Markets Review

In London FTSE 100 Index closed higher 12.56 or 0.28% to 4,493.73, in Paris CAC 40 Index increased 2.18 or 0.07% to close at 3,305.07 and in Frankfurt DAX index higher 27.59 or 0.54% to close at 5,121.56. In Zurich trading SMI increased 0.83 or 0.01% to close at 5,637.02.