BoE to Pump

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

Increasingly UK investors are relying on global economic recovery to lift earnings at commodities companies. Domestic economy is still weak and there are no signs of housing market stabilization. The BoE unanimously agreed to increase the plan to print new money by

[R]5:00 PM London – Increasingly UK investors are relying on global economic recovery to lift earnings at commodities companies. Domestic economy is still weak and there are no signs of housing market stabilization. The BoE unanimously agreed to increase the plan to print new money by £50 billion.[/R]

UK benchmark indexes closed lower as crude oil and metal prices gained. The pound climbed against all major currencies and investors look for signs of stability in housing market.

The FTSE 100 index declined 0.3% or 13.84 to 4,468.41 and British pound closed up 1% for the second day against the dollar to $1.567, 0.2% against euro to 1.13 and edged lower Japanese yen to 149.11.

According to the latest minutes of meeting held on May 7 at the Bank of England the nine members unanimously voted to increase the plan by £50 billion to £125 billion. The details of the meeting were released today. Prime Minister Gordon Brown has authorized the Bank of England to print as much as £150 billion.

Gainers & Losers

Britvic plc gained 12.7% or 34.25 pence to 303 pence after it reported first half revenues rose 6.3% and flat profit.

Experian Plc increased 1.4% to 493 pence after it reported full year revenues increased 2% and net income increased 11%.

Lloyds Banking Group Plc plunged 29.7%, the day after its rights offer expired for shareholders to participate. HSBC Holdings Plc declined 2.4% to 561.50 pence, the day after shareholders had a right to collect dividend. Standard & Chartered Plc declined 2% to 1,259 pence.

London Stock Exchange Group plc declined 0.3% to 698 pence after it reported full year revenues increased 23% and net loss.

Royal Dutch Shell increased 1.5% to 1,660 pence and BP Plc increased 0.7% to 513 pence after crude oil closed above $62 a barrel.

Vedanta Resources jumped 7.1% to 1,539 pence after metals and energy prices increased in trading. After the U.S. reported larger than expected decline in crude oil inventories and sustained demand from China for iron ore and other base metals.

William Morrison Supermarkets Plc surged 18.5% to 118.50 pence.

Earnings Review

Britvic plc, a United Kingdom-based manufacturer and distributor of soft drinks said first-half revenues rose 6.3% to £483.2 million from £454.7 million a year ago. Net profit in the year was flat at £4.9 million or £2.2 per diluted share compared to net profit of £4.9 million or £2.2 per share a year ago.

Britvic plc, in the last one year traded as high as 342.25 pence in May 2008 and as low as 161.25 pence in October 2008. Based on the yesterday’s closing price of 300.00 pence the company has market cap of £650.27 million.

Experian PLC, the world’s largest credit checking company said full-year revenues rose 2% to $3.9 billion from $3.8 billion a year ago. Net profit in the year rose 11% to $486 million or $47.5 per diluted share compared to net profit of $437 million or $42.7 per share a year ago.

Experian PLC, in the last one year traded as high as 514.50 pence in May 2009 and as low as 250.00 pence in October 2008. Based on the yesterday’s closing price of 497.25 pence the company has market cap of £5.11 billion.

London Stock Exchange plc, the operator of the London and Milan bourses said full-year revenues rose 23% to £671.4 million from £546.4 million a year ago. Net loss in the year was £338 million or £126.1 per diluted share compared to net profit of £168.3 million or £69.7 per share a year ago.

London Stock Exchange plc, in the last one year traded as high as 1,423.00 pence in May 2008 and as low as 355.75 pence in March 2009. Based on the yesterday’s closing price of 702.00 pence the company has market cap of £1.92 billion.

FTSE 100 Index Movers

Of the stocks in the FTSE 100 index, 53 increased, 49 declined and 0 were unchanged.

Lloyds Banking Group Plc decliners in the FTSE 100 index with a loss of 7.95% followed by losses in Marks and Spencer Group Plc, of 5.69%, in J Sainsbury Plc, 4.84%, in Home Retail Group Plc of 4.27% and in Prudential Plc of 4.11%.

Lonmin Plc led gainers in the FTSE 100 index with a rise of 8.11% followed by increase in Vedanta Resources Plc of 7.02%, in Fresnillo Plc of 5.77%, in Kazakhmys Plc of 4.71%, in Rio Tinto Plc of 4.34%.

European Markets

In London FTSE 100 Index closed lower 13.84 or 0.31% to 4,468.41, in Paris CAC 40 Index increased 28.41 or 0.87% to close at 3,303.37 and in Frankfurt DAX index higher 79.32 or 1.60% to close at 5,038.94. In Zurich trading SMI increased 10.47 or 0.19% to close at 5,509.27.