UK Pound Falls; Persimmons, Bovis Rise

Sarla Buch
07 Jul, 2009
New York City

The UK stocks edged lower on weak commodities and energy prices. The pound fell declined against dollar after the British Chamber of Commerce said that the Bank of England expands the asset purchase program beyond

[R]6:00 PM London, 1:00 PM New York – The UK stocks edged lower on weak commodities and energy prices. The pound fell declined against dollar after the British Chamber of Commerce said that the Bank of England expands the asset purchase program beyond £150 billion.[/R]

UK manufacturing output declined 0.5% in May from April according to the latest data from the Office for National Statistics.

The FTSE 100 index declined 7.9% to 4,187 and the pound declined 0.8% to $1.616 and fell 0.7% to 86.47 pence a euro and edged lower 0.7% to Sfr1.75.

Gainers & Losers

Mining companies stocks were weak in trading. Anglo American declined 0.1% to 1,627 pence and Xstrata increased 0.1% to 610 pence.

Bovis Homes Group increased 4.3% to 406 pence ahead of trading statement this week and Persimmon increased 7.4% to 390.25 pence after it indicated that recent home sales trends show improvement in revenues and volume.

Cobham decreased 0.2% to 177 pence and the company confirmed that it has won a contract from the US Army.

JJB Sports increased 6.5% to 24.50 pence are the company confirmed that its chairman and a competitor Sports Direct controlling shareholder have a stake in Network Technologies.

Michael Page International increased 4.1% to 234.75 pence after it reported 45% decline in profit and indicated difficult third quarter.

Staffline Recruitment surged 12.7% to 44.50 pence after it reported that first half is meeting the management expectations.

Total Systems plunged 21.9% to 28.50 pence after the company warned that its full year revenues may be lower than a year ago.

Earnings Review

Big Yellow Group PLC, a self storage firm said first quarter store revenues fell 6% to £13.5 million from £14.3 million a year ago.

Jacques Vert Plc, a women’s clothing retailer said full-year revenues fell 3.6% to £110.9 million from £115 million a year ago. Pre-tax loss for the year was £2.9 million compared to pre-tax profit of £4.3 million a year ago.

Michael Page International plc, a specialist recruitment consultancy said second quarter gross profit fell 45% to £83.8 million compared to £152.4 million a year ago.

Gross profit in the first-half fell 38.9% to £178.8 million compared to £292.7 million a year ago.

The Clapham House Group PLC, the owner of the gourmet burger kitchen chain of restaurants said full-year revenues rose 16.7% to £62.2 million from £53.3 million a year ago. Net loss for the year was £26.8 million or 71.9 pence compared to net loss of £1.7 million or 4.6 pence a year ago.