UK Stocks Turn Lower; RSA in $1 B Offering

Mayank Mehta
01 Sep, 2009
New York City

UK stocks turned lower in the late afternoon on the weak sentiment in the U.S. trading. Lower metals and oil prices also contributed to the declines. RSA Insurance Group is looking to raise $1 billion. AstraZeneca reported better results during trials using Brilinta to treat heart attacks.

[R]4:00PM London, 11:00 AM New York – UK stocks turned lower in the late afternoon on the weak sentiment in the U.S. trading. Lower metals and oil prices also contributed to the declines. RSA Insurance Group is looking to raise $1 billion. AstraZeneca reported better results during trials using Brilinta to treat heart attacks.[/R]

UK stocks traded lower after base metal prices edged lower and mixed economic reports in the U.S. UK stocks sold off after the reports suggested an uneven economic recovery in the U.S.

In London FTSE 100 Index closed lower 39.34 or 0.8% to 4,869.32 and the pound traded at $1.62 and unchanged at 1.13 euros.

Lower metal prices dragged Vedanta, Antofagasta and Anglo American down.

Gainers & Losers

AstraZeneca PLC climbed 1.9% to 2,895.50 pence after a drug trial to deal with heart attacks showed better results that with the treatment using Plavix. The company is expected to submit the drug for approval of regulatory authorities in the US and UK later this year.

Dawson International PLC fell 7.5% to 2.08 pence after the Scottish cashmere group said full year outlook ‘very challenging.’

Dechra Pharmaceuticals PLC decreased 0.3% to 427.40 pence after the specialist veterinary products group said full-year revenues rose 15% to £350 million from £304.4 million a year ago. Pre-tax profit for the full-year rose 37.6% to £16.1 million compared to pre-tax profit of £11.7 million a year ago.

Griffin Mining Limited declined 8.8% to 35.32 pence after the mining and exploration company said first-half pre-tax loss was £1.35 million compared to pre-tax profit of £13.0 million a year ago.

Hardy Oil and Gas plc gained 9.0% to 375.00 pence after the first exploration drilling began at a well on the east coast of India.

James Fisher and Sons Plc dropped 5.6% to 452.90 pence after the marine services firm said that its submarine rescue service for the Singapore Navy is now operational and all payment relating to its pre-delivery funding have been received. This cash of over £18 million will reduce the company debt by 19%.

Majestic Wine PLC rose 218.00 pence after the Aim-listed wine retailer cut the minimum purchase to six bottles from twelve.

RSA Insurance Group declined 4.8% to 124.4 pence after the Sunday Telegraph reported that the company is working to raise $1 billion and appointed JP Morgan Chase and Merrill Lynch to manage the offering.

The Royal Bank of Scotland Group plc plunged 3.5% to 55.60 pence and led the decliners in the FTSE index.

Safestore Holdings plc plunged 1.5% to 129.00 pence after the self storage operator said activity pick up in July.

Scott Wilson Group plc rose 4.4% to 88.75 after the engineering consultancy firm said reiterated full year earnings outlook on the back of recent orders.

Serco Group plc lost 1.8% to 459.70 pence after the support services group wins UK government contracts worth as much as £500 million.

Shire plc rose 1.3% to 1,037.00 pence after the drug developer filed a new application for approval with the U.S. regulators related to Type 1 Gaucher disease.

SkyePharma PLC sank 9.4% to 105.00 pence on the concern that the U.S. regulators have raised more questions related to the treatment for asthma.

Songbird Estates Plc, the Canary Wharf landlord increased 4% on the speculation that its largest investor, Qatar based sovereign wealth fund may increase its stake to 30% from 15%.

Standard Chartered PLC tumbled 1.0% to 1,381.00 pence after the Asia focused bank said that its subsidiary company, Standard Chartered First Bank Korea Limited has entered into an agreement to sell its entire 14.85% stake in BC Card Company Limited.

FTSE 100 Index Movers

Of the stocks in the FTSE 100 index, 13 increased, 87 declined and 2 were unchanged.

Eurasian Natural Resources Corporation Plc decliners in the FTSE 100 index with a loss of 6.94% followed by losses in Vedanta Resources Plc of 5.25%, in Lonmin Plc of 4.93%, in Anglo American Plc of 4.90%, in Lloyds Banking Group Plc of 4.79%.

Reckitt Benckiser Group Plc led gainers in the FTSE 100 index with a rise of 0.95% followed by increase in Diageo Plc of 0.89%, in Autonomy Corporation Plc of 0.77%, in British American Tobacco Plc of 0.75%, in AstraZeneca Plc of 4.08%.