UK Banks Rise, Home Builders Fall

123jump.com Staff
02 Apr, 2008
New York City

UK stocks rose after markets in the U.S. traded higher. In London trading FTSE 100 stocks advanced 1.08% or 63.3 at 5,915.90. The Bank of England reported that 73,000 mortgage loans were approved compared to 74,000 in January. Separately, the Building Societies Association said the value of mortgage approvals by customer-owned lenders fell 31% from a year earlier to

[R]1:00AM New York, 6:00PM London - U.K mortgage approvals were at nine-year low in February.[/R]

Stocks in London traded in positive territory after a U.S. report indicated that companies added 8,000 jobs in March stoking expectations that effects of the credit market turmoil are on the wane.

Market Sentiment

In London trading FTSE 100 stocks advanced 1.08% or 63.3 at 5,915.90.

Of the 102 FTSE 100 stocks 68 gained, 31 declined and 3 were unchanged. Old Mutual led advancers with a rise of 6.21% on investor optimism on the health of global credit markets.

U.S. companies added 8,000 jobs in March

ADP Employer Services reported on its Web site today in its National Employment Report that nonfarm private employment increased 8,000 in March from the previous month on a seasonally adjusted basis.

February estimate of the gains was revised to 5,000 from a loss of 18,000. However the report noted that the marginal increase of 8,000 in March indicates a continuing sharp deceleration of employment growth from previous levels.

The report also observed that employment in the service sector of the economy rose 85,000, while employment in manufacturing sector fell for the sixth consecutive month to 77,000.

Manufacturing employment fell for the nineteenth straight month to 58,000 in March.

Employment for large businesses - those with more than 500 workers - saw employment decline to 52,000, while employment among small-size businesses, those with fewer than 50 workers, advanced 55,000 during the month from a revised 16,000 in February.

Among medium-size businesses with between 50 and 499 workers, increased only by 5,000.

ADP Employer Services showed that construction employment fell for the sixteenth time to 22,000 in March.


U.K. mortgage approvals at nine-year low in February

The Bank of England said today banks granted 73,000 loans for home purchase in February compared to 74,000 in January beating the forecast from economists of 72,000.

Lending secured on homes stayed at £7.4 billion in February, while personal loans and overdrafts rose to £2 billion, the most since the records began in 1993.

Separately, the Building Societies Association said the value of mortgage approvals by customer-owned lenders fell 31% from a year earlier to £3.6 billion pounds.

Gainers & Losers

Old Mutual Plc led gainers in the FTSE 100 index shares with a rise of 6.21% followed by increases in Royal Bank of Scotland 5.68%, in Barclays Plc of 5%, in Schroders Plc of 4.78%, and London Stock Exchange of 3.98%.

Severn Trent led decliners in the FTSE 100 index shares with a drop of 3.7% followed by losses in Amec Plc of 3.55%, in Carphone Warehouse of 2.90%, in Tullow Oil of 2.52%, and Imperial Tobacco of 2.14%.

Severn Trent fell after it reported full year net income in 2007 rose 9.5% to £252 million from £230 million a year ago.

Homebuilders also fell as bank loans for house purchase remained at a nine-year low in February. Persimmon fell 1.95% and British Land Co. shed 0.78%.