UK Rates on Hold; Hammerson Surges 10%

123jump.com Staff
04 Jun, 2009
New York City

Mining stocks declined in London trading after the $15.5 billion between Australia based Rio Tinto and China based Chinalco may have been canceled. The Bank of England left its key lending rate unchanged. Home prices in May increased 2.6% and lifted financial and real estate stocks.

[R]6:00 PM London, 1:00 PM New York – Mining stocks declined in London trading after the $15.5 billion between Australia based Rio Tinto and China based Chinalco may have been canceled. The Bank of England left its key lending rate unchanged. Home prices in May increased 2.6% and lifted financial and real estate stocks.[/R]

Investors in London focused on the deal between Rio Tinto and China based Chalco. The largest investment in an Australian company and also the largest investment from China in the nation appear to have been canceled.

Australia remains less than a welcoming nation to foreign investment and people from other nations. Several Australian lawmakers have voiced their concerns about a large investment from China and recent violence directed at students from India is not encouraging sign from Australia.

The latest housing report from Halifax suggested that home prices increased 2.6% in May.

The Bank of England left its key lending rate unchanged and also left its plan in place to stimulate the economy with the purchase of the government bonds.

In London FTSE 100 Index closed higher 3.52 or 0.08% to 4,386.94. Mining and metals related companies fell and banks and real estate companies closed higher.

Gainers & Losers

BHP Billiton ((BHP)) declined 2.5% to 1,456 pence, Xstrata Plc dropped 3.4% to 703.50 pence, Anglo American decreased 1.9% to 1,752 pence and Antofagasta Plc edged lower to 3.1% to 619.50 pence.

Johnson Matthey Plc decreased 2% to 1,227 pence after it reported earnings declined of 6.5% and estimated weak first half earnings. Lonmin Plc plunged 6.6% 1,410 pence, the leading maker of platinum.

Hammerson Plc surged 9.3% to 303 pence after it sold a majority stake in its largest asset in London that valued property at £445 million.

William Morrison Plc increased 2.6% to 254 pence after same store sales in the first quarter increased 8.2%.

Earnings News

Helical Bar plc, British real estate firm said full-year revenues rose 25% to £81.8 million from £65.6 million a year ago. Net loss in the year was £53.64 million or £56.6 per diluted share compared to net loss of £12.31 million or £13.5 per share a year ago.

Helical Bar plc, in the last one year traded as high as 385.00 pence in September 2008 and as low as 227.25 pence in October 2008. Based on the yesterday’s closing price of 337.50 pence the company has market cap of £321.81 million.

Johnson Matthey Plc, the automotive catalyst specialist said full-year revenues rose 4.7% to £7.85 billion from £7.5 billion a year ago. Net profit in the year fell 6.5% to £174.1 million or £82.1 per diluted share compared to net profit of £186.2 million or £87.1 per share a year ago.

Johnson Matthey Plc, in the last one year traded as high as 1,760.00 pence in September 2008 and as low as 640.50 pence in November 2008. Based on the yesterday’s closing price of 1,231.00 pence the company has market cap of £2.69 billion.

McKay Securities PLC, a commercial property investment company said full-year net rental income rose 1.5% to £18.70 million from £18.43 million a year ago. Net loss in the year was £100.86 million or £220.06 per diluted share compared to net loss of £43.39 million or £94.76 per share a year ago.

McKay Securities PLC, in the last one year traded as high as 271.00 pence in June 2008 and as low as 86.50 pence in April 2009. Based on the yesterday’s closing price of 130.00 pence the company has market cap of £59.53 million.

Wincanton plc, a supply chain services firm said full-year revenues rose 1.5% to £2.36 billion from £2.16 billion a year ago. Net profit in the year fell 45% to £13.5 million or £11.6 per diluted share compared to net profit of £25.0 million or £20.6 per share a year ago.

Wincanton plc, in the last one year traded as high as 321.50 pence in June 2008 and as low as 107.00 pence in March 2009. Based on the yesterday’s closing price of 170.25 pence the company has market cap of £206.66 million.

FTSE 100 Index Movers

Of the stocks in the FTSE 100 index, 46 increased, 54 declined and 2 were unchanged.

Lonmin PLC decliners in the FTSE 100 index with a loss of 6.62% followed by losses in Rio Tinto PLC of 6.59%, in Fresnillo PLC of 5.90%, in Kazakhmys PLC of 5.29% and in Eurasian Natural Resources Corporation PLC of 3.78%.

Liberty International PLC led gainers in the FTSE 100 index with a rise of 12.00% followed by increase in Hammerson PLC of 9.29%, in ICAP PLC of 4.56%, in The British Land Company PLC of 3.76%, in Aviva PLC of 3.66%.

Europe Markets Review

In London FTSE 100 Index closed higher 3.52 or 0.08% to 4,386.94, in Paris CAC 40 Index increased 2.38 or 0.07% to close at 3,312.03 and in Frankfurt DAX index higher 10.27 or 0.20% to close at 5,064.80. In Zurich trading SMI increased 37.50 or 0.70% to close at 5,422.21.