UK Stocks Rallied, BSkyB Net Rises

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

Financial stocks lead a rally in London rally on the hopes that the U.S. stimulus plan will provide additional liquidity in the world financial system. British Sky Broadcasting interim profit increases 26% to

[R]1:00PM New York, 6:00PM London - Financial stocks lead a rally in London rally on the hopes that the U.S. stimulus plan will provide additional liquidity in the world financial system. British Sky Broadcasting interim profit increases 26% to £388 million.[/R]

Stocks in London rose driven by financial stocks after brokerage Citigroup recommended investors to buy Lloyds Banking.

Gains were also leveraged by the news that the Obama administration will unveil plans to absorb toxic assets.

In London trading FTSE 100 index rose 2.4% or 100.79 to 4,295.20.

Of the FTSE 100 index stocks, 83 rose, 18 declined, and one was unchanged. Lloyds Banking led advancers in the index shares with a rise of 50.4% after Citigroup recommended investors to buy the shares.

Financial stocks also increased. Standard Chartered rallied 10.1% and HSBC Holdings edged up 9.8%.

BSkyB Operating Profit Rises 26% to £388 million

British Sky Broadcasting reported today that operating profit increased 26% to £388 million in the six months ended December 31 as revenue in the period advanced 6% to £2.6 billion.

Net profit in the period declined £331 million year-on-year to £1.6 billion.

According to the interim report net customer addition gained 2% from a year ago to 9.238 million despite the challenging economic environment.

Total product sales gained 7% year on year in the second quarter with more than half of the customers now taking Sky+.

Chief executive Jeremy Darroch, “We enter 2009 in a strong position. Against a very difficult and uncertain economic backdrop, we will continue to focus our efforts on providing customers with more of what they want: the very best of entertainment and home communications.”

Bank of England Might Print Money in Six Months, Barclays

Barclays economist Simon Hayes said that the Bank of England might need to buy assets and print money within the next six months in order to forestall a deepening recession. The news was first reported in Bloomberg News.

According to the report, a policy of quantitative easing is nothing but the central bank authorizing printing money, involving another substantial fiscal boost will be necessary for additional support.

“Outright deflation remains a key risk. The better prepared the authorities are for dealing with deflation, the less worried the rest of us need be that deflationary spiral might take hold,” said Hayes.

Gainers & Losers

Lloyds Banking led gainers in the FTSE 100 index shares with a rise of 50.4% followed by increases in Royal Bank of Scotland of 35.7%, in Barclays Plc of 18.9%, in Prudential pf 13.7%, and Aviva Plc of 13.6%.

Lloyds Banking soared after Citigroup urged investors to buy the stock.

Xstrata Plc led decliners in the FTSE 100 index shares with a fall of 9.1% followed by losses in Tate & Lyle of 2.4%, in Reckitt Benckise of 2.1%, in Vedanta Resources of 1.7%, and Compass Group of 1.5%.

Commodity stocks fell as gold prices declined $15 to $885 per ounce and crude oil prices slipped to $41.60 per barrel. Rio Tinto dropped 1.5% and Tullow Oil dipped 0.8%.