UK Stocks in Mild Rebound, Antofagasta Up 4%

Mayank Mehta
05 Oct, 2009
New York City

UK stocks edged higher after a week of slide that prompted analysts to recommend mining stocks. Anglo American increased on a speculation that China based Baosteel is interested in its Brazilian iron ore operations. Chemring Group wins lucrative US defense contract.

[R]4:00 PM London, 11:00 AM New York – UK stocks edged higher after a week of slide that prompted analysts to recommend mining stocks. Anglo American increased on a speculation that China based Baosteel is interested in its Brazilian iron ore operations. Chemring Group wins lucrative US defense contract. Minerva full-year losses widen. Waterman Group pre-tax profit turns lower.[/R]

UK stocks edged higher after miners gained as analysts recommend the sector and media reports suggested that Anglo American may have a buyer for its Brazilian operations. Commodities also closed higher in London trading.

In London FTSE 100 Index closed higher 35.63 or 0.7% to 5,024.33 and the pound edged up to close at $1.595 and at 1.091 euros.

Gainers & Losers

Admiral Group plc rose 1.4% to 1,143.00 pence after the auto insurance company launched its U.S. operations.

Anglo American gained 4% to 1,951 pence on the media report that China based Baosteel offered £1 billion to acquire the Brazil based iron ore operations from the company, according to a report in the Observer.

Animalcare Group Plc added 8.5% to 95.00 pence after the veterinary and farming supplies company said full-year revenues rose 49% to £17.6 million from £11.8 million a year ago. Net profit for the full-year rose 17% to £1.04 million or 5.0 pence per diluted share compared to net profit of £0.89 million or 7.6 pence per share a year ago.

Assetco PLC increased 5.5% to 52.00 pence after the support services company said in its trading update for the half year ended September that the board is confident that the financial performance of the company will remain in line with expectations.

Aviva plc decreased 2.2% to 442.30 pence after the life insurance group intends to dispose at least 30% of its stake in subsidiary Delta Lloyd. The Company currently holds a 92% stake in Delta Lloyd.

Balfour Beatty plc rose 0.5% to 309.80 pence after the engineering and construction contractor said on Monday it has won two contracts in the education sector worth in total £134 million ($213.1 million).

Chemring Group plc increased 3.3% to 2,481.00 pence after the military decoy specialist said on Monday its U.S. unit Kilgore Flares Co LLC received a five-year contract with a maximum value of $804 million for the supply of decoy flares to the U.S. Department of Defense.

HSBC Holdings plc fell 0.4% to 683.30 pence after the banking and financial services wholly owned U.S. subsidiary agreed the sale and leaseback its headquarters building at 452 Fifth Avenue in New York for $330 million in cash.

IQE plc rose 3.7% to 14.52 pence after the semiconductor wafers technology specialist said it would buy UK-based NanoGaN Ltd for up to £3.6 million ($5.76 million) to boost its product portfolio and it remained confident of meeting full-year market expectations.

Image Scan Holdings PLC plunged 15.7% to 2.00 pence after the X-Ray imaging group said that it expects lower turnover for its year ending September 2009, on weak industrial sales.

Kopane Diamonds Developments PLC climbed 0.4% to 16.08 pence.

Minerva plc advanced 5.4% to 39.00 pence after the real estate firm said full-year revenues rose 10.7% to £13.5 million from £12.2 million a year ago. Net loss for the full-year was £287.0 million or 178.1 pence per diluted share compared to net loss of £231.9 million or 143.9 pence per share a year ago.

PZ Cussons plc added 1.0% to 250.00 pence after the soap manufacturer said it had traded well in the first-quarter, helped by a strong performance from its UK business, and that group profitability was ahead of the same period last year.

Royal Bank of Scotland decreased 4.1% to 48.56 pence after the UK controlled bank is still looking to buy its Asian operations after talks with Standard & Chartered did not lead to a deal.

Synchronica plc rose 3.4% to 3.88 pence after the AIM listed mobile email and synchronization provider said it won a contract to supply its Mobile Gateway product to a South-East Asian operator with more than 30 million subscribers on its GSM network.

Supercart Plc surged 47.3% to 21.00 pence after the sale and distribution of a range of all-plastic supermarket trolleys and hand baskets said that for second half of 2009, it expects to achieve a pre-tax profit.

Waterman Group plc fell 9.2% to 44.00 pence, the engineering and environmental company said full-year revenues fell 10.3% to £122.4 million from £136.4 million a year ago. Net profit for the full-year fell 33% to £2.52 million or 8.5 pence per diluted share compared to net profit of £3.76 million or 12.6 pence per share a year ago.

Watermark Global Plc a commercializing process technologies for the treatment of acid mine drainage surged 13.2% to 1.47 pence.

William Sinclair Holdings plc closed unchanged at 77.50 pence after the garden and horticultural products firm said its trading for the year ending in September is in line with management expectations with relatively strong consumer demand and slightly tempered by inventory reductions at retailers.

Wolfson Microelectronics plc plunged 10.9% to 120.00 pence after the Scottish semiconductors group said it expects third-quarter revenue of about $35 million with poor end-consumer demand.

FTSE 100 Index Movers

Of the stocks in the FTSE 100 index, 78 increased, 23 declined and 1 were unchanged.

Wolseley Plc decliners in the FTSE 100 index with a loss of 1.41% followed by losses in Carnival Plc of 1.03%, in Unilever Plc of 0.90%, in Diageo Plc of 0.89%, in Friends Provident Plc of 0.83%.

Eurasian Natural Resources Corporation Plc led gainers in the FTSE 100 index with a rise of 4.71% followed by increase in The Royal Bank of Scotland Group Plc of 4.50%, in RSA Insurance Group Plc of 4.23%, in Anglo American Plc of 3.84%, in Antofagasta Plc of 3.68%.