Persimmon, AB Foods Lead FTSE Higher

Ivaylo
26 Feb, 2007
New York City

The FTSE 100 moved higher on Monday, supported by oil stocks and an upbeat trading statement from Associated British Foods. Housebuilder Persimmon topped market forecasts. Oil stocks were firm as the price of oil advanced. After a strong session in Asia, miners were also stronger with Kazakhmys leading the gainers. By late morning, the FTSE 100 gained 43.7 points at 6,446.4.

[R]9:30AM London is higher Monday on Persimmon ans AB Foods.[/R]
The UK market was higher on Monday. By late morning, the FTSE 100 gained 43.7 points at 6,446.4.

Advancers

AB Foods rose 5.1% as it reported a strong performance from its sugar businesses and a 4% rise in sales at the Primark fashion chain. Strong full-year results boosted housebuilder Persimmon, 3.6% higher, and Old Mutual, the life assurer, up 2.8%.

As the crude price rose a further 28 cents to $61.42, oil stocks were again stronger. BP rose 2.1% and Cairn Energy gained 1.8%. Miners also traded higher after a strong session in Asia overnight. Kazakhmys, the copper miner, gained 2.4%.

Decliners

William Ransom has warned profit growth for the full year to March 31 would come in below its own previous expectations due to a slower than expected recovery in a key export market. William Ransom declined 20.6%. Alfred McAlpine crashed as it warned it had discovered signs of a systematic fraud at its Slate subsidiary. The stock fell 19.6%.

BSkyB declined 0.6% on continued worries about its dispute with Virgin Media. BSkyB announced discussions with Virgin Media about the carriage of Sky basic channels were ongoing and there was a real possibility that agreement would not be reached before expiry of the current contract at midnight on February 28. The higher crude price dragged Carnival, the cruise operator, 0.3% lower.

[R]9:00AM Asian markets finished mixed Monday with Japan higher and HK lower.[/R]
Asian markets closed mixed on Monday. The Nikkei ended 0.15% higher at 18,215.35. Sony edged 0.8%, after Merrill Lynch upgraded its rating to buy"" from sell and raised its target price. Softbank gained 3.1%. Resona Holdings fell 2% but shares of Nikko Cordial gained 13% on reports U.S.-based Citigroup Inc. is seeking to substantially boost its 4.9% stake in the company. Sanyo Electric gained 3.9%, following a 21% plunge Friday after the Osaka-based electronics maker announced it was being investigated.

Hong Kong Hang Seng Index fell 0.98% to 20,507.95 and Australian leading share index rose 0.13% to 6,044. In Australia, Rio Tinto led gains among the resources sector after prices for industrial commodities and precious metals rose. Rio Tinto rose 2.1%, while BHP Billiton added 0.5%.

Other benchmarks around the region also gained. South Korea Kospi index closed up 0.15% at 1,470.03 and Taiwan Weighted Price Index closed 1.16% higher at 7,900.20, lifted by gains in construction companies on reports that regional investors are starting to take an active interest in Taiwan real-estate market. China Shanghai Composite Index swung from early losses to jump 1.67%. However, Singapore Straits Times Index fell 0.08% to 3,307.92.

[R]6:30AM European markets were higher on Monday on updates, bid talk.[/R]
European markets were higher on Monday. By mid morning, Frankfurt Xetra Dax added 0.5% to 7,024.35, the CAC 40 in Paris gained 0.9% to 5,766.96 and London FTSE 100 climbed 0.6% to 6,438.3.

Advancers

Dutch television production company Endemol gained 3.1% after French luxury goods group LVMH was talking with Endemol French management about a bid. Telefonica, the Spanish telecoms group which owns 75% of Endemol, is preparing an auction of the maker of Deal Or No Deal and Big Brother within two weeks, and may allow only two rival groups to bid for the company, valued at 2.74 billion euros. Shares in LVMH were up 0.9%, while Telefonica added 0.6%.

Allianz, the German non-life insurer, gained 3.4 % as its strong full-year results last week earned it a series of upgrades. Merrill Lynch raised its rating on the company to buy, while UBS, Bear Stearns and Credit Suisse all lifted their target prices on the stock. Axa, Europe second-biggest insurer after Allianz, gained 2%, riding on the positive momentum built up after it also reported stronger-than-expected results last week.

Decliners

Danish drugmaker Novo Nordisk fell 7.5% after the company said it was not seeking regulatory approval to treat bleeding on the brain with NovoSeven after negative results in clinical trials.

Oil and gold

Crude oil for April delivery rose 31 cents to $61.45 a barrel in electronic trading on the New York Mercantile Exchange. April Brent crude on London ICE Futures exchange rose 34 cents to $61.22 a barrel. Gold for immediate delivery advanced $5.20, or 0.8%, to $687.75 an ounce, and traded at $686.65 in early trade in London.

Currencies

The [euro was nearly unchanged against the dollar on Monday as German consumer sentiment fell for a second straight month and worries about Iran''s nuclear ambitions kept currencies on edge. The euro bought $1.3163 in morning European trading, nominally up from $1.3162 in New York late Friday. The British pound fell to $1.9628 from $1.9637 and the dollar also moved lower against the Japanese yen, dropping to 120.78 yen from 121.04 yen.

[R]5:30AM Corn and soybean sank, while gold and silver gained on Friday.[/R]
March corn ended 4.25 cents lower at $4.3025 per bushel, while March soybeans settled down 5.50 cents at $7.7825 per bushel. March wheat fell 5.25 cents to $4.8425 per bushel.

April gold gained $3.70 to end at $686.70 a troy ounce on the New York Mercantile Exchange. March silver settled up 34.5 cents at $14.595 an ounce. April platinum settled up $7.60 at $1,237.60 an ounce, while March palladium settled up $7.40 at $358.10 an ounce. The March copper contract added 7.40 cents to finish at $2.8400 per pound.

The front-month April crude oil settled up 19 cents at $61.14 a barrel after rallying to $61.80 a barrel, the highest level since Dec. 26. March gasoline settled up 0.83 cent at $1.7631 a gallon. March heating oil advanced 2.55 cents at $1.7505 a gallon. March natural gas settled up 2.8 cents at $7.755 a million British thermal units.

On the New York Board of Trade, May Arabica coffee futures closed unchanged at $1.2015 a pound, with July steady at $1.2290. Futures on raw sugar in foreign ports for March declined 0.13 cent to end at 10.97 cents a pound, with May off 0.04 cent at 10.64 cents.