UK Miners Rise on China Manufacturing Gains

123jump.com Staff
01 May, 2009
New York City

UK stocks closed flat on low trading volume on a day when all other European markets were closed. Copper and Nickel prices rallied after China reported healthy gains in manufacturing for the second month in a row. Kazakhmys surged 10% and other miners including Xstrata and Antofagasta surged.

[R]8:00PM London – UK stocks closed flat on low trading volume on a day when all other European markets were closed.[/R]

FTSE 100 index declined 0.49 to close at 4,243.22. Stocks were nearly unchanged after all major markets in Europe and many markets in Asia were closed.

Copper, Nickel and zinc prices rallied after China reported healthy gains in manufacturing for the second month in a row. Kazakhmys surged 10% to 590 pence and other miners including Xstrata and Antofagasta gained.

Rentokil Initial Plc surged 16.7% to 76.75 pence after it reported first quarter sales rose 10% and net income increased 16%.

Informa Plc surged 13% to 335.75 after it launched 2-for-5 rights issues in a fully underwritten 242 million pounds offering. The move will help the company lower its debt. The company also plans to move its headquarters to Switzerland as keep its tax rate below 27%. The recent move by the UK Treasury could increase its tax to 33%.

Informa is known for its publications of academic and professional and trade journals and also maritime newspaper Lloyd’s List.

Index Gainers & Losers

Of the stocks in FTSE 100 index, Legal & General Group led decliners with a loss of 3.4% followed by losses in Intercontinental Hotel Group Plc of 3.2%, in Amlin Plc of 2.9%, in Land Securities of 2.6%, in Bunzl Plc of 2.6%.

Kazakhmys Plc led gainers in the FTSE 100 index with a rise of 10.3% followed by gains in Royal Bank of Scotland of 5.2%, in Vedanta Resources of 5.2%, Xstrata Plc of 5.1% and in Antofagasta Plc of 4.75%.

Earnings Review

Rentokil Initial plc, provider of a range of business to business support services said first quarter revenues grew 10% to £634.6 million from £578.1 million a year ago. Net profit in the quarter rose 16.1% to £21.6 million compared to net profit of £18.6 million a year ago.

Rentokil Initial plc, in the last one year traded as high as 109.00 pence in June 2008 and as low as 29.25 pence in December 2008. Based on the yesterday’s closing price of 75.50 pence the company has market cap of £1.35 billion.

Asian Markets Review

The Nikkei 225 Index in Tokyo closed higher 149.11 or 1.69% to 8,977.37. ASX 200 index in Australia decreased 10.90 or 0.29% closed to 3,769.60. The JSE Index in Indonesia increased 6.82 or 0.40% closed to 1,729.58.

The Markets of South China, Hong Kong, India, Malaysia, Korea, Thailand and India were closed today.

Europe Markets Review

In London FTSE 100 Index closed lower 0.49 or 0.01% to 4,243.22. Markets of Paris, Frankfurt and Zurich were closed today.