New 10-Month High in UK Indexes

Mayank Mehta
24 Aug, 2009
New York City

UK stocks edged higher for the fifth day in a row on a rally in commodities and crude oil. Resource stocks jumped for the third day in a row. Amlin Plc first half profit increased 29%. Bovis Homes Group first half profit plunged. Bunzl Plc closed up latest results.

[R]7:00 PM London, 2:00 PM New York – UK stocks edged higher for the fifth day in a row on a rally in commodities and crude oil. Resource stocks jumped for the third day in a row. Amlin Plc first half profit increased 29%. Bovis Homes Group first half profit plunged. Bunzl Plc closed up latest results and international business acquisitions.[/R]

UK stock rally led by the commodities and resource stock continued for the fifth day. The benchmark index reached 10-month high, and fifth record close in a row.

In London FTSE 100 Index closed higher 45.34 or 0.93% to 4,896.23 and the Pound declined to $1.643 and 87.23 to per euro.

The Bank of England purchased £1.4 billion bonds that are maturing in the next 15 to 25 years.

Gainers & Losers

Miners led the gainers and in volume trading in the session. BHP Billiton increased 3.6% to 1,648.50 pence, Eurasian Natural Resources added 5.3% to 896.50 pence and Kazakhmys advanced 5.8% to 980 pence.

Amlin Plc increased 3.8% to 368.60 pence after it increased dividend and reported 29% increase in first half profit of £177.1 million.

Bovis Homes Group increased 2.9% to 553 pence after it reported sharply lower profit in the first half. The home builder said independent home completions increased 18% in the period.

Bunzl Plc increased 4.4% to 576.50 pence after it reported an increase in pre-tax profit and said it is looking to acquire new business in other countries.

Johnston Press Plc surged 27% to 39.25 pence after it clarified that it is not seeking a buyer for The Scotsman newspaper.

FDM Group surged 11.1% to 125 pence after the management revised its offer to take the company private at 135 pence a share.

Offshore Hydrocarbon Mapping surged 58.8% to 13.50 pence after it raised £2.6 million and converted long term debt to equity. The company did not disclose the amount of debt conversion.

Mavinwood surged 81.8% to 2.50 pence after the company disclosed that it is in preliminary takeover talks.

Warner Chilcott Plc ((WCRX)) surged 28% to $20.48 in New York after the company agreed to pay $3.1 billion in cash for global pharmaceutical business of Procter & Gamble & Company. The portfolio of drugs includes ulcerative colitis treatment drug, osteoporosis and prescription products in development and production facilities in Germany and Puerto Rico.

FTSE 100 Index Movers

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

G4S Plc decliners in the FTSE 100 index with a loss of 3.53% followed by losses in BG Group Plc of 1.96%, in Kingfisher Plc of 1.49%, in GlaxoSmithKline Plc of 1.27%, in Marks and Spencer Group Plc of 1.25%.

The Royal Bank of Scotland Group Plc led gainers in the FTSE 100 index with a rise of 6.75% followed by increase in Lloyds Banking Group Plc of 6.29%, in Kazakhmys Plc of 5.77%, in Eurasian Natural Resources Corporation Plc of 5.28%, in London Stock Exchange Group Plc of 5.28%.

Europe Markets Review

In London FTSE 100 Index closed higher 45.34 or 0.93% to 4,896.23, in Paris CAC 40 Index increased 36.36 or 1.01% to close at 3,652.17 and in Frankfurt DAX index higher 57.01 or 1.04% to close at 5,519.75. In Zurich trading SMI increased 54.59 or 0.89% to close at 6,194.39.