UK Energy Stocks Weak; Ladbrokers Fall 9%

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

Mining and energy related stocks closed lower in UK on a fall in energy prices. The interbank rate continues to fall. Barclays surged after it confirmed that it has received offers for its investment management unit.

[R]6:00PM London – Mining and energy related stocks closed lower in UK on a fall in energy prices. The interbank rate continues to fall.[/R]

In London FTSE 100 Index closed lower 14.47 or 0.33% to 4,348.11 and for the week lost 2.6%.

The interbank rate known as Libor continue to decline and the TED spread, the difference between the bank rates and the risk free U.S. Treasury rate, dropped to the lowest level since August 2007. The Libor rate for three-month dollar deposit loans declined to 0.83%. The rise in bank deposits in the U.S. contributed the fall in spreads.

Gainers & Losers

Barclays Plc increased 6% to 267.75 pence after it clarified in a press release that according to its sales terms with CVC Capital Partners Ltd the bank has a right to seek higher offer for 45 business days from April 15. It further noted, “Barclays has received a number of expressions of interest, including unsolicited interest in the broader BGI business.”

Expreian Plc increased 3.8% to 483 pence after the stock was rated “overweight” by an analyst at JP Morgan Chase. Deutsche Bank also raised its view on the company and recommended the stock with “buy” rating. The news was first reported in Newratings.com and Bloomberg News.

Ladbrokers Plc declined 9% to 204.75 pence after it reported that gross profit for the four months period ending in April fell 34%. Profits from high rollers in the period were £25 million and additional £15 million since May 1.

Rio Tinto Limited surged 2.7% to 2,664 pence after it said in a statement that it is committed to investment from Aluminum Corp of China. Daily Telegraph this week had reported that the company may be looking for alternative investments from other companies and UBS AG suggested that BHP Billiton may work with the company to raise capital.

FTSE 100 Index Movers

Of the stocks in the FTSE 100 index, 49 increased, 52 declined and 1 were unchanged.

BT Group plc decliners in the FTSE 100 index with a loss of 3.85% followed by losses in Standard Life plc, of 3.64%, in British Airways plc, 3.38%, in Land Securities Group Plc of 3.37% and in Pennon Group plc of 3.07%.

Barclays PLC led gainers in the FTSE 100 index with a rise of 5.83% followed by increase in Vedanta Resources Plc of 5.11%, in Cobham plc of 4.15%, in Experian plc of 3.82%, in Rexam PLC of 3.50%.

Europe Markets Review

In London FTSE 100 Index closed lower 14.47 or 0.33% to 4,348.11, in Paris CAC 40 Index increased 12.76 or 0.40% to close at 3,169.05 and in Frankfurt DAX index lower 0.97 or 0.02% to close at 4,737.50. In Zurich trading SMI decreased 9.33 or 0.17% to close at 5,350.67.

Earnings Review

Clipper Windpower PLC, a wind energy technology company said full-year revenues were $737.33 million from $23.87 million a year ago. Net loss for the quarter was $313.3 million or $2.56 per diluted share compared to net loss of $192.5 million or $1.79 per share a year ago.

Clipper Windpower PLC, in the last one year traded as high as 675.00 pence in May 2008 and as low as 61.88 pence in January 2009. Based on the yesterday’s closing price of 129.90 pence the company has market cap of £168.94 million.