Record Quartly Rise for FTSE Index

123jump.com Staff
30 Sep, 2009
New York City

The UK benchmark index closed lower but surged 20.8%, its best quarterly gain since 1984. The index has gained 46% since its low in March and is below 5.2% from a year ago. Marks & Spencer fell on cautious outlook. Hays dropped on regulatory fine. Man Group assets under management increased.

[R]4:00PM London, 11:00 AM New York – The UK benchmark index closed lower but surged 20.8%, its best quarterly gain since 1984. The index has gained 46% since its low in March. Marks & Spencer fell on cautious outlook. Hays dropped on regulatory fine. Man Group gained after asset under management increased.[/R]

UK stocks edged lower on the last day of trading in a quarter that generated the best quarterly gain of 20.8% since 1984. Marks & Spencer fell after the company issues cautious outlook and Hays Group dropped 4.2% after the company and five other recruiting agencies were fined £39.3 million.

In London FTSE 100 Index closed lower 56.47 or 1.0% to 5,097.23 and the pound edged up to close at $1.597 and edged lower at 1.094 euros. The index has rallied 46% since its low on March 3 but the index is 5.2% lower than a year ago.

According to David Schwartz, the market historian quoted in Guardian the other three quarterly leading gains were in the fourth quarter of 1999 with 14.9%, in second quarter of 1987 with 14.3% and fourth quarter of 1992 with 11.5%.

Gainers & Losers

Alexon Group plc plunged 13.2% to 42.50 pence after a fashion retailer said first-half revenues fell 11% to £77.7 million from £87.0 million a year ago. Pre-tax loss for the first-half was £8.1 million compared to pre-tax profit of £6.9 million a year ago.

Alexandra plc fell 8.0% to 26.22 pence after the work wear and uniform group said that its board is not proposing an interim dividend.

ASOS plc decreased 2.6% to 355.00 pence an online clothes retailer said that “the company expects sales for the six months to September are 47% ahead of the comparable period last year and international sales increasing by over 110% representing around 25% of total sales for the period. The results to date are in line with management's expectations.”

Babcock International Group PLC declined 2.7% to 568.00 pence after the support services specialist said Wednesday that trading in the first half of its financial year had been strong and it expected to “deliver excellent progress this year.”

Blacks Leisure Group plc closed unchanged at 32.50 pence after the struggling retailer said it has begun the closure and employee consultation process on 89 loss making stores whose performance has been a considerable drag on the core outdoor business.

Care UK Plc jumped 27.7% to 380.00 pence after the provision of a range of health and social care solutions said that its board has recently received an unsolicited takeover approach from Bridgepoint Capital Limited.

Cadbury plc rose 0.1% to 800.00 pence after the confectionery company said reiterated its rejection of Kraft Foods, Inc.'s approach after the takeover panel executive announced a bid deadline of November 9.

Cluff Gold plc declined 4.2% to 67.00 pence after the gold mining company said first-half net loss was $29.5 million or 27.35 cents per diluted share compared to net loss of $4.34 million or 5.48 cents per share a year ago.

FirstGroup plc dropped 2.1% to 415.70 pence after the provision of passenger transport services sees trading in line with views.

Hamworthy plc fell 4.2% to 275.00 pence after the provides specialist systems and services to the marine and oil and gas industries said that it has completed the acquisition of the business and assets of Krystallon Limited for a cash consideration of £0.95 million payable immediately plus £0.8 million payable upon satisfactory completion of an internal testing program.

ITE Group plc fell 2.5% to 126.75 pence an organizer of exhibitions and conferences said that “trading for the fourth quarter has been in line with management expectations. Revenues are expected to be down by about 18% to £116 million from £110 million a year ago. Cost reduction and favourable exchange rates in the fourth quarter will result in profits for the full year being slightly ahead of current market expectations.”

Man Group Plc rose 5.7% to 325.80 pence after the fund manager said trading update for the period of six months ending September 2009 that “sales for the period of an estimated $5.7 billion. Funds under management estimated at $43.8 billion. Profit before tax of an estimated at $280 million. Diluted earnings per share on total operations of around 12.5 cents. Financial position remains very strong, with the regulatory capital surplus in excess of $1.5 billion at September 2009.”

Marks & Spencer Group plc slipped 2.5% to 365.40 pence after the retailer of clothing food and home products said group sales up 2.7% and UK sales increased 1.9%. UK like-like sales fell 0.5%. Clothing sales gained 2.7%, home product sales up 1.8% and food sales advanced 1.7%. International sales were rose 9.6% and online sales were increased 30%.

Misys plc the financial services and healthcare software provider fell 0.2% to 207.50 pence.

Motivcom plc fell 0.9% to 67.33 pence after the marketing services firm said that the board has approved an interim dividend of £0.8 per ordinary share.

Panmure Gordon & Co. plc decreased 6.8% to 34.00 pence after the stockbroker said its chief executive Caplin resigned.

Silence Therapeutics plc closed unchanged at 25.00 pence after the biotechnology company said first-half revenues rose to £856,626 from £124,338 a year ago. Net loss for the first-half was £3.57 million or 2.66 pence per diluted share compared to net loss of £4.92 million or 4.09 pence per share a year ago.

Smiths Group plc rose 5.7% to 886.00 pence after the technology company said full-year revenues rose 15% to £2.67 billion from £2.32 billion a year ago. Net profit for the full-year rose 0.4% to £269.5 million or 68.6 pence per diluted share compared to net profit of £268.5 million or 68.5 pence per share a year ago.

St. Modwen Properties plc decreased 1.0% to 227.60 pence and the company indicated that there are signs of improvement in residential land market and rents are expected to increase slowly.

Tanfield Group Plc plunged 10.8% to 51.50 pence after the manufacturer of aerial work platforms and commercial electric vehicles said that the board expects trading conditions in the second half will be similar to the first half of the year.

Telecom plus PLC the utility firm that provides gas, electricity to telephone services rose 2.3% to 320.25 pence.

Thomas Cook Group plc fell 3.4% to 232.60 pence after the provision of leisure travel services said it remains confident that it can meet the board's expectations for the 2009 and 2010 financial years.

Travis Perkins plc rose 4.8% to 840.00 pence after the builders' merchant said total Group sales for the nine months to the end of September is down 11.0% compared to the equivalent period in 2008.

FTSE 100 Index Movers

Of the stocks in the FTSE 100 index, 39 increased, 58 declined and 5 were unchanged.

Tui Travel Plc decliners in the FTSE 100 index with a loss of 4.29% followed by losses in Liberty International Plc of 3.94%, in Thomas Cook Group Plc of 3.53%, in Marks and Spencer Group Plc of 3.39%, in Next Plc of 3.14%.

Man Group Plc led gainers in the FTSE 100 index with a rise of 7.50% followed by increase in Legal & General Group Plc of 6.10%, in Smiths Group Plc of 6.03%, in Aviva Plc of 3.92%, in Wolseley Plc of 3.79%.