UK Uenmployment at 7.2%; Sainsbury Offering

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

UK unemployment edged up to 7.2% in three months to April and increased at a slower pace than expected. J. Sainsbury completed offering of

[R]6:00 PM London, 1:00 PM New York – UK unemployment edged up to 7.2% in three months to April and increased at a slower pace than expected. J. Sainsbury completed offering of £242 million stocks and £190 million bonds offering. Holidaybreak Plc to plans raise £31 million to acquire properties.[/R]

Mining stocks led the decliners in London trading as metal prices fell and investors stayed on the side line. The 14-week old rally in stocks appear to be on hold as more investors look for evidence of real change in the economy.

UK Unemployment Rises

The UK unemployment rate was 7.2% for the three months to April 2009, up 0.7 percentage point over the previous quarter and up 1.9 percentage point over the year.

The number of unemployed people increased 232,000 over the quarter and by 605,000 from a year ago, to reach 2.26 million.

The claims for unemployment benefits increased 39,300 to 1.54 million in May, the smallest increase in ten months.

European Construction Rebounds

Across the euro zone of 16 nations, seasonally adjusted construction activities in April increased 0.6% after gaining 0.6% in March.

Across the wider euro are of 27 nations, the activities increased 0.7% in the month after edging 0.1% in March.

Compared to a year ago output dropped 4.7% in the euro area and by 5.1% in the wider euro region.

Gainers & Losers

J. Sainsbury Plc declined 5.7% to 313 pence after it reported same store sales increased 7.8% for the twelve weeks ending on June 13. The sales excluded fuel and VAT. The company also raised completed stock offering of £242 million and convertible debt offering of £190 million. The new offerings will increase outstanding shares by 4.4%. The shares were offered at 310 pence each.

British American Tobacco edged up 0.2% to 1,660 pence after it acquired 85% stake in the fourth largest cigarette company in Indonesia for £303 million.

Mining stocks closed sharply lower. Vedanta Resources fell 7.4% to 1,384 pence, Xstrata Plc declined 10.2% to 643.50 pence, Antofagasta dropped 6.5% to 589 pence and Kazakhmys dived 7.9% to 628.50 pence.

W.S. Atkins, the engineering and design company full year revenues increased 13% but net profit fell 16%.

The fashion retail group Alexon declined 9.5% to 50 pence after it reported same store sales for 17 weeks ending on June 13 fell 10.5%

Holidaybreak Plc increased 6.8% to 320 pence after it proposed to raise £31 million to acquire educational holiday centers.

Earnings Review

Atkins (WS) plc, design and engineering consultancy group said full-year revenues rose 13% to £1.49 billion from £1.31 billion a year ago. Net profit in the year fell 16% to £84.2 million or £84.8 per diluted share compared to net profit of £100.0 million or £97.2 per share a year ago.

Atkins (WS) plc, in the last one year traded as high as 1,094.00 pence in June 2008 and as low 415.00 pence in March 2009. Based on the Friday’s closing price of 562.00 pence the company has market cap of £570.63 million.

Imaginatik plc, a software developer said full-year revenues rose 44% to £4.6 million from £3.2 million a year ago. Net loss in the year was £102,428 or £0.08 per diluted share compared to net loss of £139,647 or £0.12 per share a year ago.

Imaginatik plc, in the last one year traded as high as 8.00 pence in May 2009 and as low 1.50 pence in December 2008. Based on the Friday’s closing price of 7.00 pence the company has market cap of £9.29 million.

FTSE 100 Index Movers

Of the stocks in the FTSE 100 index, 25 increased, 77 declined and none were unchanged.

Xstrata plc decliners in the FTSE 100 index with a loss of 10.19% followed by losses in Lonmin Plc of 8.46%, in Kazakhmys PLC of 7.91%, in Rio Tinto plc of 7.83% and in Vedanta Resources plc of 7.36%.

Vodafone Group Plc led gainers in the FTSE 100 index with a rise of 3.71% followed by increase in BT Group plc of 3.02%, in BAE Systems plc of 2.60%, in AstraZeneca PLC of 2.54%, in Reed Elsevier plc of 1.86%.

Europe Markets Review

In London FTSE 100 Index closed lower 50.11 or 1.16% to 4,278.46, in Paris CAC 40 Index decreased 52.81 or 1.64% to close at 3,161.14 and in Frankfurt DAX index declined 90.74 or 1.86% to close at 4,799.98. In Zurich trading SMI decreased 74.81 or 1.39% to close at 5,302.29.