UK Stocks Rise; Tate & Lyle, Euromoney in Focus

Mayank Mehta
25 Sep, 2009
New York City

Unilever Plc proposed to acquire Sara Lee global body care and European detergent business for

[R]4:00PM London, 11:00 AM New York – Unilever Plc proposed to acquire Sara Lee global body care and European detergent business for €1.3 billion. Euromoney Institutional Investor Plc increased after it lifted its earnings outlook. Luminar Group fell after company said it will miss earnings outlook. Afren, West Africa focused energy company reported wider losses.[/R]

UK stocks edged higher after three days of decline as leaders of G-20 nations meet in Pittsburgh, Pennsylvania. The regulators and leaders are preparing to tighten the pay scales for banks, regulatory regime for financial markets and increase scrutiny of off shore accounts.

In London trading FTSE 100 Index closed higher 35.94 or 0.7% to 5,112.31 and the pound edged down to close at $1.599 and at 1.089 euros.

Banks decreased on the worries that revised regulatory regime and higher capital requirements may lower earnings in the next business cycle. Barclays Plc declined 2.1% to 357 pence and Lloyds fell 3.4% to 103.45 pence. HSBC increased 0.1% to 704 pence.

British Banking Association chief executive Angela Knight in a speech cautioned that if we keep criticizing the industry in UK other countries will attract business. She also said that those who are holding the platform to make public comments should exercise prudence.

But she failed to explain why the banks in the UK ignored caution at the time of financial crisis that has engulfed the nation into the worst recession in seven decades.

Gainers & Losers

Afren Plc decreased 4.2% to 78.00 pence after the Africa-focused oil explorer said first-half loss widened to $38.5 million from $26.8 million a year ago. The West Africa focused energy explorer said it had seen ""significant operational success"" and expected 2009 oil output to average 22,238 barrels of oil per day.

Astaire Group Plc plunged 10.0% to 4.50 pence after the stockbroker formerly known as Blue Oar securities said first-half losses increased.

The BSS Group plc decreased 0.1% to 289.60 pence after the plumbing supplies distributor said its first-half revenue fell 4% on tough trading conditions and that it cut more jobs as it continued to expect weak demand for the current year.

Euromoney Institutional Investor Plc surged 11.4% to 333.80 pence after the business information publisher said that for fiscal 2009 it expects adjusted profit before tax of not less than £57 million ahead of market expectations.

GEONG International Limited declined 2.3% to 42.00 pence after the enterprise content management software and solutions provider said on Friday that order book at end-August grew more than 25% since end-March aided by higher contract wins with second-tier banks.

Dillistone Group Plc added 8.0% to 135.00 pence after the recruitment software supplier said first-half revenues fell 28% to £1.82 million from £2.09 million a year ago. Net profit for the first-half fell 47% to £351,737 or 6.17 pence per diluted share compared to net profit of £664,004 or 11.60 pence per share a year ago.

Luminar Group Holdings plc plunged 33.0% to 87.00 pence after the nightclub operator reported a ""significant risk"" it will not meet profit forecasts for its current year which ends on February 25, 2010. The company cited declining business at its night clubs.

Overall sales in the continuing business fell by 5.9% in twenty six weeks to 27 August 2009 compared to the same period last year.

Petards Group plc fell 2.1% to 0.59 pence after the security and surveillance systems firm said that for fiscal 2009 it expects profits to be in line with market expectations.

Richoux Group Plc plunged 10.0% to 9.00 pence after the restaurants operator said 28-week loss widens.

Tate & Lyle PLC fell 0.2% to 414.10 pence after the manufacturer of renewable food and industrial ingredients lowered its outlook for first-half pretax profits on a fall in commodity prices and a higher interest charge.

Unilever PLC fell 0.1% to 1,734.00 pence after the food and households goods giant agreed to acquire Sara Lee global body care and European detergent business for €1.275 billion.

Volvere plc surged 15.3% to 300.00 pence an investment company said first-half revenues rose 2,099% to £5.4 million from £246,000 a year ago. Net profit for the first-half was £6.9 million or 113.56 pence per diluted share compared to net profit of £10,000 or 0.18 pence per share a year ago.

Zirax plc plunged 18.5% to 2.75 pence after the road de-icing specialists said first-half revenues fell 3.3% to $14.6 million from $15.1 million a year ago. Net loss for the first-half was $1.3 million or 77 cents per diluted share compared to net loss of $602,000 or 35 cents per share a year ago.