Wm Morrison, Home Retail Fall

123jump.com Staff
11 Sep, 2008
New York City

Stocks in UK declined, as investors focused on the weak economy and struggling consumers. The benchmark index FTSE 100 declined for the third day in a row and dropped 47.80 or 0.9% to 5,318.40. For the year the index has declined 18% as most European markets have fallen more than 15% in the period. Home Retail Group dropped 5.7% or 13.75 to 228 pence after it reported same stores sales decline in the second quarter.

[R]6:00PM London – UK stocks fell on persistent domestic market worries, rising inflation and weak consumer sentiment.[/R]

Stocks in UK declined, as investors focused on the weak economy and struggling consumers. The benchmark index FTSE 100 declined for the third day in a row and dropped 47.80 or 0.9% to 5,318.40. For the year the index has declined 18% as most European markets have fallen more than 15% in the period.

Stock Movers

Home Retail Group dropped 5.7% or 13.75 to 228 pence after it reported a sales decline in the second quarter at home improvement retail chain Homebase and electronics retailer Argos locations. Same store sales in the quarter at Argos declined 5.8% to £927 million and at Homebase fell 8.3% to £389 million.

William Morrison declined 6.1% to 253.75 pence after it reported first-half earnings decline of 3.1% and revenue rise of 13%. Same store sales increased 7.6% from a year ago excluding fuel sales and rose 31.6% including fuel sales. The board increased interim dividend by 18.5% to 0.8 pence for shareholders on record of October 10.

Earnings per diluted share declined to £218 million or 8.09 pence from £225 million or 8.45 pence in the prior year period.

Premier Farnell plc fell 6.6% or 12.50 pence to 176 pence after it reported increase in sales and earnings but offered a mixed outlook. Electronics and industrial products retailer with offices in 24 countries serves 2 million customers.

Stocks in pharmaceutical industry fell after several analysts cut price targets and lowered the near term outlook. GlaxoSmithKlie fell 2% to 1,254 pence and AstraZeneca dropped 2.9% to 2,566. The pharma industry employs 73,000 people and is one of the largest exporters from the island nation.

Earnings Review

Galliford Try plc, the U.K. construction company said full year sales gained 30% to £1.83 billion from £1.40 billion a year earlier. Net profit in the full year fell 2.58% to £42.5 million or 11.4 pence per diluted share compared to net income of £43.6 million or 14.1 pence per share, a year earlier.

Galliford Try plc in the last one year traded as high as 163.50p in October 2007 and as low as 30.50p in June 2008. Based on the yesterday’s closing price the company has a market cap of £242.68 million.

John Lewis Partnership Plc, the owner of Waitrose supermarkets and the largest U.K. department- store chain said first-half revenues rose 5.5% to £3 billion from £2.8 billion a year earlier. Net profit in the first-half dropped 45.13% to £75.1 million compared to net income of £109 million, a year earlier.

Premier Farnell plc, the U.K. electronic and industrial products supplier founded in 1939 said second quarter sales increased 9.4% to £195.8 million from £178.9 million a year earlier. Net profit in the quarter gained 15% to £12.6 million or 3.4 pence per diluted share compared to net income of £11 million or 3 pence per share, a year earlier.

Premier Farnell plc in the last one year traded as high as 207p in September 2008 and as low as 122p in January 2008. Based on the yesterday’s closing price the company has a market cap of £675.14 million.

Wm Morrison Supermarkets PLC, the fourth largest U.K. food retailers said first-half revenues rose 13.5% to £7.1 billion from £6.3 billion a year earlier. Net profit in the first-half fell 3.1% to £218 million or 8.09 pence per diluted share compared to net income of £225 million or 8.45 pence per share, a year earlier.

Wm Morrison Supermarkets PLC in the last one year traded as high as 325.50p in December 2007 and as low as 244.75p in July 2008. Based on the yesterday’s closing price the company has a market cap of £6.94 billion.

Europe Markets Review

In London FTSE 100 Index closed lower 47.80 or 0.89% to 5,318.40, in Paris CAC 40 Index decreased 34.59 or 0.81% to close at 4,249.07 and in Frankfurt DAX index lower 31.42 or 0.51% to close at 6,178.90. In Zurich trading SMI decreased 50.18 or 0.70% to close at 7,071.25.

Asian Markets Review

The Nikkei 225 Index in Tokyo closed lower 244.13 or 1.98% to 12,102.50, Hang Seng index in Hong Kong decreased 611.06 or 3.06% closed to 19,388.72.ASX 200 index in Australia decreased 91.20 or 1.86% to close 4,814.30. The KL Composite index in Malaysia decreased 21.04 or 2.04% closed to 1,041.07.

The Kospi Index in South Korea decreased 21.74 or 1.48% to close at 1,443.24, SET index in Thailand closed lower 8.74 or 1.33% to 646.80 and JSE Index in Indonesia decreased 14.91 or 0.79% to 1,870.13. The Sensex index in India decreased 338.32 or 2.31% closed to 14,324.29.