Baltic Dry Index Surges; ITV in UK Surges

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

Shipping freight rate index closed higher for the eighteenth day in a row. Speculators cited congestion at Chinese ports, rising shipping day rates and demand for iron ore in Asia. Media stocks closed higher after a broker revised earnings outlook for the industry.

[R]5:00 PM London, 12:00 PM New York – Shipping freight rate index closed higher for the eighteenth day in a row. Speculators cited congestion at Chinese ports, rising shipping day rates and demand for iron ore in Asia. Media stocks closed higher after a broker revised earnings outlook for the industry.[/R]

In London FTSE 100 Index closed higher 4.51 or 0.10% to 4,416.23 on strength in media, travel and mining stocks.

The pound increased against all major currencies. Against dollar the pound increased to $1.607, 1.15 euros and 152.65 yen.

Baltic Dry Index, a measure of freight rates surpassed 3,000 for the first time since October 2008.

The index traded at its worst between 550 and 800 in the fourth quarter of 2008 had eighteen successive days of gains. The talks of Chinese stimulus, congestion at Chinese ports and once again growing iron ore traffic to China has sustained the momentum.

Gainers & Losers

Britvic plc declined 5.4% to 275 pence after Permira is reported to have sold its 14% stake in the company. Reuters reported according to a trader at UBS that sale price per share around 270 pence.

Jessops Plc plunged 60% to 2.50 pence after it said that debt restructuring with HSBC will wipe out shareholders. The 2.3 million shares changed hands in today’s trading.

Jessops Plc reported six month period ending in March sales declined 8% and net loss increased to £13 million from £11.2 million a year ago period. The largest photo accessories and camera retailer in UK reported net liabilities of £29.9 million and estimated that stock holders are likely to be wiped out after the debt restructuring of £60 million.

Same store sales in the period declined 4.5%.

Media stocks rallied after Goldman Sachs revised its estimate of earnings in the industry.

ITV plc increased 12.2% to 31.50 pence after Goldman Sachs upgraded the commercial broadcaster. Johnston Press Plc increased 1.04% to 24.25 pence and Daily Mail and General Trust surged 6% to 324.50 pence. Trinity Mirror increased 5.6% to 70.75 pence.

Earnings Review

Cluff Gold plc, a gold miner said full-year net loss in the year was $0.95 million or $1.08 per diluted share compared to net loss of $4.78 million or $7.47 per share a year ago.

Northern Foods plc, the manufacturer of a mix of own label and branded products for retailers said full-year revenues rose 4.6% to £975.2 million from £931.9 million a year ago. Net profit in the year fell 93% to £2.5 million or £0.52 per diluted share compared to net profit of £34.5 million or £6.95 per share a year ago.

Speedy Hire Plc, a provider of tool and equipment hire said full-year revenues rose 2.3% to £476.1 million from £465.5 million a year ago. Net profit in the year rose 134% to £54.6 million or £107.93 per diluted share compared to net profit of £23.3 million or £47.49 per share a year ago.

The BSS Group PLC, a distributor of specialist trades said full-year revenues rose 4% to £1.34 billion from £1.29 billion a year ago. Net profit in the year rose 0.5% to £41 million or £33.2 per diluted share compared to net profit of £40.8 million or £33.0 per share a year ago.

Topps Tiles Plc, a provider of tile and wood flooring said first -half revenues fell 13.4% to £92.08 million from £106.34 million a year ago. Net profit in the first-half fell 98% to £184,000 or £0.11 per diluted share compared to net profit of £10.7 million or £6.25 per share a year ago.

Torotrak plc, engaged in the full-toroidal traction-drive transmission technology said full-year revenues rose 25% to £4.62 million from £3.69 million a year ago. Net loss in the year was £1.79 million or £1.22 per diluted share compared to net loss of £2.13 million or £1.57 per share a year ago.

FTSE 100 Index Movers

Of the stocks in the FTSE 100 index, 60 increased, 41 declined and 1 were unchanged.

Lonmin Plc decliners in the FTSE 100 index with a loss of 4.0% followed by losses in Fresnillo Plc of 4.0%, in Legal & General Group Plc of 2.8%, in Cobham Plc of 2.5% and in Royal Bank of Scotland Group PLC of 2.4%.

Intercontinental Hotels Group PLC led gainers in the FTSE 100 index with a rise of 5.9% followed by increase in Man Group Plc of 5.3%, in Old Mutual plc of 4.8%, in Thomas Cook Group PLC of 4.0%, in Home Retail Group plc of 3.8%.

Europe Markets Review

In London FTSE 100 Index closed higher 4.51 or 0.10% to 4,416.23, in Paris CAC 40 Index increased 24.77 or 0.76% to close at 3,294.86 and in Frankfurt DAX index higher 15.17 or 0.30% to close at 5,000.77. In Zurich trading SMI decreased 11.85 or 0.22% to close at 5,419.42.