British Energy Surges. UK Stocks Rise

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

Stocks in UK rose as investors braved to buy stocks of utilities and mining companies. FTSE 100 index increased 0.95% or 55.8 to 5,947.10 and of the 102 in the FTSE 100 stocks, 67 rose, 28 declined and 7 were unchanged. The IMF report cautioned that UK and Ireland may be the next to face a housing market correction after the U.S. residential market collapse.

[R]1:00AM New York, 6:00 PM London - UK likely to follow U.S. in residential housing slump.[/R]

In London trading FTSE 100 increased 0.95% or 55.8 to 5,947.10. Of the 102 FTSE 100 stocks 67 rose, 28 declined and 7 were unchanged.

British Energy led advancers in the FTSE 100 stocks with a rise of 7.32% after La Tribune in France reported that Electricite de France SA plans to bid for the company.

U.S. economy lose 80,000 jobs in March

Non-farm payrolls in the U.S. dropped for the third straight month to 80,000 in March and private sector laid off people for the fourth month in a row. Unemployment rose to 5.1%, four-year high. The latest data on rising unemployment is yet another evidence of deepening recession and widening weakness in the labor markets. Construction industry, financial services and retail sector reduce employment but health and education sector hired employees. Government also added staff.

If not for the government hiring, the employment would have declined by 98,000.

Banks to oppose Alistair plans to create a new panel

Bloomberg news reported that the British Bankers Association will oppose Chancellor of the Exchequer Alistair Darling’s plans to manage the financial institutions in the crisis.

Darling is presently consulting with the BBA on plans to create legislation that is meant to help the Government to prevent future bank failures. BBA is likely to submit its proposal to the Treasury on April 7.

According to the report, the Treasury is proposing a system managed by the FSA to determine which institutions are most at risk.

It is notes that under its proposal, the FSA would confidentially grade institutions red, amber or green and oversee banks that are on green. Institutions graded amber would receive oversight from the Bank of England or the Treasury. A red grade would require a decision by government officials on whether to intervene.

IMF says U.K and Ireland likely to fall U.S. in housing slump

The International Monetary Fund reported today in the World Economic Outlook that the recent increase in residential prices during the recent years will lead Ireland and the U.K. into a housing slump.

In the report, it noted that Ireland, the United Kingdom and Netherlands are “vulnerable to a correction in house prices.”

Gainers & Losers

British Energy led advancers in the FTSE 100 stocks with a rise of 7.32% followed by gains in ICAP Plc of 4.64%, in Rio Tinto Plc of 4.63%, in Antofagasta Plc of 4.03%, and Schroders Plc of 3.70%.

British Energy gained after the La Tribune noted that Electricite de France SA will bid for the company.

Antofagasta rose on the news that its JV between Empresa Nacional del Petroleo will produce as much as 400 megawatts of power in 10 years. BHP Billiton Plc advanced 3.65% and Xstrata Plc edged up 3.55%.

Kingfisher Plc led decliners with a fall of 2.98% followed by Persimmon Plc of 2.97%, in Marks & Spencer of 1.72%, in Enterprise Inns of 1.69% and Rexam of 1.53%.

British Land Co shed 1.37% and Lloyds TSB Group declined 1.13%.

Global markets review

In Tokyo Nikkei 225 Index closed lower 96.68 or 0.72% to 13,.293.22. In Australia ASX 200 index higher 10.70 or 0.19% to close 5,619.60. In Malaysia KL Composite index decreased 3.60 or 0.29% closed to 1,221.98. Market of Hong Kong was closed today.

In South Korea Kospi Index increased 2.86 or 0.16% to close at 1,766.49, in Thailand SET index closed lower 1.88 or 0.23% to 824.80 and Indonesia JSE Index increased 39.11 or 1.75% to 2,277.08. Sensex index in India decreased 489.43 or 3.09% to 15,343.12.

In London FTSE 100 Index closed higher 55.80 or 0.95% to 5,947.10, in Paris CAC 40 Index increased 13.01 or 0.27% to close at 4,900.88 and in Frankfurt DAX index added 21.67 or 0.32% to close at 6,763.39. In Zurich trading SMI increased 57.26 or 0.76% to close at 7,573.49.