UK Stocks Edge Higher; Pound Rises

123jump.com Staff
05 Jan, 2009
New York City

UK stocks edged higher after crude oil reached $47. Adams Childrenswear Limited shut 111 stores and Waterford Wedgewood Plc appointed administrator for its certain UK subsidiaries. The pound rose 2.4% against the euro. Old Mutual led decliners in the FTSE 100 index with a loss of 10%.

[R]1:00PM New York, 6:00PM London - Administrators close 111 Adam''s Childrenswear Limited stores.[/R]

London stocks rose 0.4% despite news that PricewaterhouseCoopers will shut 111 Adam’s stores throughout the U.K. today after failing to find a suitor for the business.

Energy stocks gained as crude oil prices held at $47 a barrel on the continued military advances by Israel in Gaza.

In London trading FTSE 100 index rose 0.4% or 17.85 to 4,579.64.

Of the FTSE 100 index stocks, 56 increased, 43 declined, and 3 were unchanged. International Powers led advancers in the index shares with a rise of 7.4% followed by Serco Group increasing 6.3%.

Adam''s Childrenswear Closed

PricewaterhouseCoopers reported today that since its appointment as administrators of Adam''s Childrenswear Limited it has received a number of expressions of interest. However, the company could not find a buyer and 850 people will be laid off.

The remaining 160 stores will remain open while administrators search for a purchaser for the business.

Waterford Wedgwood Goes Into Receivership

Waterford Wedgwood Plc. reported today that Angus Martin, Neville Khan, Nick Dargan and Dominic Wong of Deloitte LLP were this morning appointed as Joint Administrators to Waterford Wedgwood UK Plc and certain UK subsidiaries.

The company failed to find relevant suitors as a going concern “following the expiration and non-renewal of forbearance period.”

According to the report, certain Group companies have now been placed into receivership or will shortly be placed into administration. The continuance of the forbearance was essential to the Group continuing as a going concern.

Waterford Wedgwood Plc chief executive officer David Sculley said, “I am disappointed that certain of the Group''s UK and Irish subsidiaries have had to go into administration and receivership, but we remain optimistic that ongoing discussions will result in a buyer being found for the businesses.”

Pound Rises

The pound rose 2.4% to 93.54 pence against the euro on expectations the government will guarantee asset backed securities in order to boost lending.

Gainers & Losers

International Power led advancers in the FTSE 100 index shares with a rise of 7.4% followed by increases in Serco Group of 6.3%, in Standard Chartered of 5.2%, in Xstrata of 6.1%, and Drax Group of 5.7%.

Tullow Oil advanced 2.9% and Cairn Energy edged up 4.1%.

Old Mutual led decliners in the FTSE 100 index shares with a fall of 10% followed by losses in Randgold Resources of 9.3%, in HBOS Plc of 9.2%, in Tate & Lyle of 8.5%, and Friends Provident of 5.6%.

Gold stocks dropped after gold prices retreated $21 to $853.40 per ounce.