Steady UK Trade Deficit; Laura Ashley Up

Mayank Mehta
09 Sep, 2009
New York City

UK trade deficit in July matched the deficit in June of

[R]4:00PM London, 11:00 AM New York – UK trade deficit in July matched the deficit in June of £6.5 billion and consumer confidence rose to the highest in the year in August. Resource stocks edged higher on steady rise in commodities prices. Johnson Service Group returns to the black. Laura Ashley sales rise as profit shrinks. Modern Water first-half losses widen.[/R]

UK stocks edged higher after commodities prices gained in London and New York trading. Financials edged lower on the worries that valuations are stretched and growing awareness that banks may have to raise more capital in UK and Europe to meet the revised European Union guidelines.

In London FTSE 100 Index closed higher 46.08 or 0.9% to 4,993.42 and the pound edged higher at $1.65 and 1.13 euros.

A private survey on consumer confidence index conducted by TNS for the building society Nationwide showed an increase to 63 in August from 61 in July.

Separately, the Office for National Statistics reported July trade deficit of £6.5 billion matching the deficit in June.

Gainers & Losers

African Copper Plc surged 22.0% to 8.85 pence after the miner said that its subsidiary, Messina Copper has recommenced operations at the Company''s Mowana Mine in Botswana.

A & J Mucklow Group plc decreased 4.1% to 280.00 pence after the property real estate investment trust said full-year revenues fell 9.2% to £16.7 million from £18.4 million a year ago. Net loss for the full-year was £52.0 million or 86.71 pence per diluted share compared to net loss of £27.3 million or 45.44 pence per share a year ago.

Alliance Pharma plc added 5.0% to 18.65 pence after the pharmaceutical company said first-half revenues rose 34% to £13.2 million from £9.9 million a year ago. Net profit for the first-half rose 40% to £2.1 million or 1.16 pence per diluted share compared to net profit of £1.5 million or 0.90 pence per share a year ago.

BG Group plc rose 3.6% to 1,093.00 pence after the oil and gas explorer said the test results on its 30% owned Guara discovery in the Santos Basin off the coast of Brazil were ''excellent.'' The company estimates between 1.1 billion and 2.2 billion barrels of oil in the deepwater oil field.

Central Rand Gold Limited fell 6.7% to 17.25 pence.

The Berkeley Group Holdings plc advanced 1.6% to 930.50 pence after the home builder said that stability in the housing market, first noted in June, has continued in the first four months of its current financial year in terms of both transaction volumes and pricing. Cancellation rates are at normal levels and forward sales have been maintained above £600 million.

IG Group Holdings plc fell 6.4% to 348.70 pence after the company said revenue rose 28% in its fiscal first quarter 2010 on strong overseas sales.

Johnson Service Group PLC closed unchanged at 18.75 pence after the dry cleaning to clothes hire firm said first-half revenues fell 7.8% to £120.0 million from £130.1 million a year ago. Net profit for the first-half was £3.9 million or 1.5 pence per diluted share compared to net loss of £6.1 million or 10.4 pence per share a year ago.

Laura Ashley Holdings plc edged higher 6.0% to 17.50 pence after the home furnishings and fashion retailer said first-half sales rose 6.3% to £127.8 million from £120.2 million a year ago. Pre-tax profit for the first-half fell 76.6% to £1.1 million compared to pre-tax profit of £4.7 million a year ago.

Modern Water Plc rose 8.5% to 71.10 pence after the water management company said first-half net loss was £2.0 million or 3.4 pence per diluted share compared to net loss of £1.05 million or 1.7 pence per share a year ago.

Morse plc increased 3.2% to 32.00 pence an IT consultancy group said full-year revenues fell 9.9% to £211.9 million from £235.3 million a year ago. Net loss for the full-year was £12.1 million or 9.3 pence per diluted share compared to net loss of £4.8 million or 3.7 pence per share a year ago.

Ocean Power Technologies, Inc dropped 4.3% to 246.25 pence after the wave energy technology company said first quarter revenues fell 27.8% to $1.3 million from $1.8 million a year ago. Net loss for the quarter was $2.10 million or 21 cents per diluted share compared to net loss of $3.89 million or 38 cents per share a year ago.

Prezzo plc added 3.8% to 31.40 pence after the pizza restaurant company said first-half revenues rose 5.5% to £43.7 million from £41.4 million a year ago. Net profit for the first-half rose 119% to £3.5 million or 1.54 pence per diluted share compared to net profit of £1.6 million or 0.69 pence per share a year ago.

Sports Direct International plc the sportswear retailer rose 7.5% to 127.20 pence.

Thorntons PLC rose 7.8% to 99.75 pence after the chocolate maker said full-year revenues rose 3.2% to £214.8 million from £208.1 million a year ago. Net profit for the full-year fell 40.5% to £3.6 million or 5.4 pence per diluted share compared to net profit of £6.07 million or 9.0 pence per share a year ago.

Town Centre Securities PLC closed unchanged at 160.00 pence after the property investment and developer said full-year revenues rose 9.8% to £23.6 million from £21.5 million a year ago. Net loss for the full-year was £111.6 million or 210.2 pence per diluted share compared to net loss of £11.2 million or 21.0 pence per share a year ago.

FTSE 100 Index Movers

Of the stocks in the FTSE 100 index, 79 increased, 21 declined and 2 were unchanged.

Lonmin Plc decliners in the FTSE 100 index with a loss of 2.80% followed by losses in Pearson Plc of 2.13%, in Experian Plc of 2.08%, in Randgold Resources Ltd. Plc of 1.88%, in InterContinental Hotels Group Plc of 1.54%.

British Airways Plc led gainers in the FTSE 100 index with a rise of 4.98% followed by increase in Thomas Cook Group Plc of 4.61%, in Cairn Energy Plc of 4.17%, in The British Land Company Plc of 3.89%, in BG Group Plc of 3.79%.