Mining Stocks Rebound

123jump.com Staff
21 Feb, 2008
New York City

Stocks in London gained on increased activity in the mining industry and on strong earnings from Reeds Elsevier. In London trading FTSE 100 rose 0.65% or 38.6 to 5,932.20. Of the 102 stocks in FTSE 100 index, 64 gained and 38 declined. Reed Elsevier led advancers in the FTSE 100 index stocks with a rise of 7.45% after the company reported today that net income rose to

[R]2:00PM New York, 7:00PM London- U.K retail sales in the quarter to January rose 0.6% from the previous quarter. Mining stocks advanced.[/R]

Stocks in London gained on increased activity in the mining industry and on strong earnings from Reeds Elsevier.

In London trading FTSE 100 rose 0.65% or 38.6 to 5,932.20. Of the 102 stocks in FTSE 100 index, 64 gained and 38 declined.

Reed Elsevier led advancers in the FTSE 100 index stocks with a rise of 7.45% after the company reported today that net income rose to £1.2 billion from £263 million pounds a year ago.

U.K. Retail Sales Rise

The Office of National Statistics reported on its website today that sales volumes in the quarter to January rose by 0.6% compared to the previous quarter. In the quarter to December, sales volumes increased 0.5%.

For food stores, three-monthly growth in sales volumes was at 0.1%. Sales in non-store retailing and repair store increased 8.2% while sales in non-specialized items declined 3.9%.

Total sales volume in the three months to January was 4.1% higher than the same period a year earlier. Sales volume for household goods stores rose by 9.8% the most since February 2002.

In addition, sales volume for food stores rose by 0.9%, and volumes for non-store retailing and repair grew 18.0%.

Total sales volume increased by 0.8% between December and January and sales volume for food stores increased by 0.7%.

For household goods stores, sales rose by 4.3%, the most since August 2006. Non-seasonally adjusted value of retail sales for the quarter to January was 1.3% higher from a quarter ago.

According to the ONS, the average weekly value of sales in January was £4.6 billion, adding that sales by food stores rose by 6.7% over the year. Sales for non-specialized stores fell by 2.2% per cent, the most since September 2005.

Gainers & Losers

Reed Elsevier led advancers in the FTSE 100 shares with a rise of 7.45% followed by increases in Royal & Sun Alliance of 3.32%, in Old Mutual Plc of 3.05%, in Anglo America Plc of 3.04%, and in Yell Group Plc of 3.04%.

Reed Elsevier gained after net income increased from £623 million pounds last year to £1.23 billion and on reports that the company will purchase ChoicePoint Inc for $3.5 billion.

Commodity stocks fell after Bloomberg news reported that Estado de S. Paulo newspaper reported that Cia. Vale do Rio Doce, largest iron ore mining company increased its offer for Xstrata to $89.3 billion in cash and stock.

Retailers also advanced on a government report that noted that retail sales jumped 0.6% in the quarter to December.

Centrica Plc led decliners in the FTSE 100 index with a fall of 3.90% followed by losses in British Airways of 3.55%, in British Energy of 2.57%, in Alliance & Leicester of 2.54%, and in Scottish & Newcastle of 2.54%.