Market Updates

FTSE Index Drops 2.5%; WPP Plunges 7%

123jump.com Staff
02 Jul, 2009
New York City

    UK and European market indexes closed sharply lower after the U.S. unemployment rate increased to 9.5%. Mining and financial sector stocks fell. London Stock Exchange fell 5% after it lowered fees. Elan surged 20% after Johnson & Johnson acquired a stake in the company. WPP Group dropped 7%.

[R]6:00 PM London, 1:00 PM New York – UK and European market indexes closed sharply lower after the U.S. unemployment rate increased to 9.5%. Mining and financial sector stocks fell. London Stock Exchange fell 5% after it lowered fees. Elan surged 20% after Johnson & Johnson acquired a stake in the company. WPP Group dropped 7%.[/R]

UK stocks fell sharply after the U.S. unemployment rose to 9.5%. The employers eliminated 467,000 jobs surprising many economists. The job losses continue in manufacturing, retail and construction industries.

In London FTSE 100 Index closed lower 106.44 or 2.45% to 4,234.27.

Gainers & Losers

Elan Corporation surged 20.2% to 5.70 euros after Johnson & Johnson invest $1 billion to take 18.4% stake in the company and acquired portfolio of drugs related to Alzheimer.

Game Group decreased 13.4% to 142 pence after it reported first half sales declined 9.1% and same stores fell 15.4%.

Green King increased 3% to 422.25 pence after it reported full year revenue rise of 0.6% and net profit declined 68%. The results were better than estimated at the time of rights offering.

London Stock Exchange Group decreased 5.5% to 663.50 pence after it revised its trading fees that will lower the revenues in the first quarter of this year by £3 million.

Photo-Me International surged 10.6% to 18.25 pence after it reported full-year revenues increased 9% and net loss declined.

Mining and metals companies declined after the U.S. reported higher job losses than expected n June. Rio Tinto decreased 5.7% to 2,035 pence, BHP declined 4.7% to 1,358 pence and Anglo American plc fell 5.8% to 1,726 pence.

Tikit plunged 14% to 107 pence after it warned weak second quarter and second half results.

WPP Group dropped 7% to 384 pence after Citigroup lowered its views on the company estimated organic revenues decline of 7.5%.

Earnings Review

Greene King plc, the brewer and pub operator said full-year revenues fell 0.6% to £954.6 million from £960.5 million a year ago. Net profit for the year fell 68% to £39.5 million or 29.4 pence per diluted share compared to net profit of £124.3 million or 89.7 pence per share a year ago.

Photo-Me International plc, a photo booth provider said full-year revenues rose 9% to £210.5 million from £193.5 million a year ago. Net loss for the full-year was £15.6 million or 4.34 pence a diluted share compared to net loss of £19.9 million or 5.52 pence per share a year ago.

Photo-Me International plc, in the last one year traded as high as 23.00 pence in April 2009 and as low as 9.25 pence in February 2009. Based on the yesterday’s closing price of 17.00 pence the company has market cap of £61.15 million.

NCC Group plc, the independent information security assurance group said full-year revenues rose 31% to £46.8 million from £35.7 million a year ago. Net profit for the year rose 22.2% to £7.7 million or 22.1 pence per diluted share compared to net profit of £6.3 million or 18.3 pence per share a year ago.

The Game Group plc, a specialist computer and video games retailer said for the first 21 weeks to 27 June 2009, total sales were down 9.1%. Like for like group sales for the same period declined 15.4%. In the UK and Ireland, total sales were down by 12.4% and like for like sales were down by 15.8%. In international business, total sales were down by 1.1% and like for like sales were down by 14.4%.

FTSE 100 Index Movers

Of the stocks in the FTSE 100 index, 4 increased, 98 declined and none were unchanged.

WPP Plc decliners in the FTSE 100 index with a loss of 7.01% followed by losses in Anglo American plc of 5.81%, in Rio Tinto plc of 5.70%, in London Stock Exchange Group Plc of 5.48% and in Lonmin Plc of 5.01%.

Diageo plc led gainers in the FTSE 100 index with a rise of 0.89% followed by increase in Petrofac Limited of 0.52%, in Friends Provident plc of 0.18%, in Admiral Group plc of 0.11%.

Europe Markets Review

In London FTSE 100 Index closed lower 106.44 or 2.45% to 4,234.27, in Paris CAC 40 Index decreased 100.59 or 3.13% to close at 3,116.41 and in Frankfurt DAX index lower 186.95 or 3.81% to close at 4,718.49. In Zurich trading SMI decreased 117.71 or 2.15% to close at 5,355.23.

Annual Returns

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Earnings

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