UK 4-Day Rally; Henderson, Autonomy Drop

Trupti Mehta
16 Jul, 2009
New York City

UK stocks advanced as global stock and commodities markets continue to rise. The benchmark index closed higher for the fourth day in a row. Lloyds Banking eliminates more staff. Autonomy dropped after it reported 67% increase in earnings. Henderson dropped after it issued weak earnings outlook.

[R]6:00 PM London, 1:00 PM New York – UK stocks advanced as global stock and commodities markets continue to rise. The benchmark index closed higher for the fourth day in a row. Lloyds Banking eliminates more staff. Autonomy dropped after it reported 67% increase in earnings. Henderson Group dropped after it issued weak earnings outlook.[/R]

Stocks in UK advanced for the fourth day in a row as more investors join the rising markets and earnings news dominated the trading sentiment. Lloyds Banking eliminated 1,200 additional jobs totaling near 9,000 as it integrated HBOS.

In London FTSE 100 Index closed higher 15.38 or 0.35% to 4,361.84 and the pound closed at $1.64 and 1.16 euros.

Gainers & Losers

Autonomy Corporation plc declined 8.6% to 1,205 pence after the infrastructure software provider said second quarter revenues rose 55% to $195.2 million from $125.6 million a year ago. Net profit for the quarter rose 67% to $50.9 million or 21 cents per diluted share compared to net profit $30.5 million or 14 cents per share a year ago.

Autonomy Corporation plc, in the last one year traded as high as 1,538 pence in May 2009 and as low as 730 pence in October 2008. Based on the yesterday’s closing price of 1,189 pence the company has market cap of £2.85 billion.

Henderson Group Plc dropped 8.4% to 95 pence and the fund manager expects first-half pre-tax profit between £25 million and £28 million compared to £50.8 million in the first half of 2008.

Henderson Group Plc, in the last one year traded as high as 136.75 pence in September 2008 and as low as 50.00 pence in October 2008. Based on the yesterday’s closing price of 96.00 pence the company has market cap of £774.92 million.

Hilton Food Group Plc, a meat-packaging firm said that “trading for the period has been in line with the Board’s expectations. In the UK, where the market has been challenging benefitted from an increased volume of barbecue products. Trading has been strong in Central Europe as customer volumes grew. In Ireland the bacon, sausage and gammon project has continued to perform well.”

Hilton Food Group Plc, in the last one year traded as high as 191.00 pence in September 2008 and as low as 136.00 pence in February 2009. Based on the yesterday’s closing price of 172.00 pence the company has market cap of £119.81 million.

Llyods Banking increased 1.8% to 69.95 pence after it eliminated additional 1,200 jobs.

Mothercare PLC increased 1.3% to 539 pence after the baby products retailer said first quarter total sales rose 9.4%. Like-for-like UK sales rose 5.1%. The company said that “it was helped by strong performances from Early Learning Centre franchises in Mothercare stores and strong sales of summer products.” International sales rose by 32.7%.

Mothercare PLC, in the last one year traded as high as 532.00 pence in July 2009 and as low as 259.00 pence in October 2008. Based on the yesterday’s closing price of 533.00 pence the company has market cap of £466.14 million.

Petrofac increased 5.3% to 730.50 pence after the oil services company secured 4-year gas development contract in U.A.E.

Raymarine decreased 14.9% to 10 pence after the company said first half sales fell 24% and the company is still looking to raise equity.

Spectris plc decreased 5.7% to 519 pence after a precision instrument and controls company said first-half sales are expected to have fallen by approximately 20% on constant currency organic basis, while on a reported basis, sales are expected to be rose by 4%. Operating profit in the first half is expected to be around £20 million. Net debt rose approximately 10% since the year end.

Spectris plc, in the last one year traded as high as 830.50 pence in August 2008 and as low as 382.50 pence in March 2009. Based on the yesterday’s closing price of 521.00 pence the company has market cap of £601.17 million.

Vitec Group plc, a media products firm said first-half revenues was up approximately 1% than a year ago. In constant currency group revenue fell around 20% in line with the board''s expectations. In broadcast systems first-half revenues fell approximately 10% or 30% in constant currency.

Vitec Group plc, in the last one year traded as high as 433.75 pence in September 2008 and as low as 148.00 pence in November 2008. Based on the yesterday’s closing price of 245.75 pence the company has market cap of £104.80 million.

FTSE 100 Index Movers

Of the stocks in the FTSE 100 index, 58 increased, 41 declined and 3 were unchanged.

Autonomy Corporation plc decliners in the FTSE 100 index with a loss of 8.57% followed by losses in Eurasian Natural Resources Corporation PLC of 3.16%, in Legal & General Group Plc of 2.32%, in Anglo American plc of 2.28%, in Old Mutual Plc of 2.26%.

Petrofac Ltd led gainers in the FTSE 100 index with a rise of 5.26% followed by increase in Land Securities Group plc of 4.70%, in Schroders plc NV of 3.58%, in Schroders plc of 3.30%, in Standard Life plc of 2.90%.

Europe Markets Review

In London FTSE 100 Index closed higher 15.38 or 0.35% to 4,361.84, in Paris CAC 40 Index increased 28.41 or 0.90% to close at 3,199.68 and in Frankfurt DAX index higher 28.75 or 0.58% to close at 4,957.19. In Zurich trading SMI increased 65.24 or 1.19% to close at 5,538.57.