UK Rates on Hold; Vedanta Resources Rises

123jump.com Staff
08 Oct, 2009
New York City

The Bank of England left its key lending rate at 0.5% and asset purchase plan unchanged. Vedanta Resources gained after it reported higher iron ore and aluminum production. Ladbrokes Plc fell after it plans to raise

[R]7:00 PM London, 2:00 PM New York – The Bank of England left its key lending rate at 0.5% and asset purchase plan unchanged. Vedanta Resources gained after it reported higher iron ore and aluminum production. Ladbrokes Plc fell after it plans to raise £275 million in rights offering.[/R]

The Bank of England left its key lending rate at 0.5% and left unchanged its asset purchase plan at £175 billion. The pound edged higher as commodities prices rallied and dollar dropped to another low of the year against nine major currencies.

In London FTSE 100 Index closed higher 29.94 or 0.5% to 5,136.75 and the pound edged higher to close at $1.606 and edged higher at 1.089 euros.

Gainers & Losers

ATH Resources plc decreased 2.8% to 51.00 pence after the coal producer said its full-year sales had come in below its expectations and that profit for the year ended Oct. 4 was also expected be hurt.

The Carphone Warehouse Group PLC added 0.5% to 206.20 pence after the mobile phone retailer and broadband provider reaffirmed its financial guidance for the full year to March 2010. Analysts surveyed by Reuters on an average are expecting the company to report earnings per share of £0.14 on revenue of £1.67 billion for the same period.

Carillion plc rose 6.4% to 296.20 pence after the construction service company said that it expects to achieve its “objective of delivering materially enhanced earnings for fiscal 2009.”

Carluccio''s PLC rose 1.5% to 98.00 pence after the Italian restaurant chain said that for fiscal 2009, it expects to deliver underlying profit before tax slightly ahead of board expectations. Analysts surveyed by Reuters are expecting the company to report pre-tax profit of £4.5 million for fiscal 2009.

C&C Group plc the manufacturer and distributor of branded beverages said first-half revenues fell 10.5% to €257.5 million from €287.7 million a year ago. Net profit for the first-half fell 10% to €51.9 million or 16.3 cents per diluted share compared to net profit of €57.6 million or 18.3 cents per share a year ago.

Cobham plc advanced 1.0% to 223.00 pence after the defense firm said Thursday that it has won a long-term extension to its contract worth some A$100 million with Australian air Express to provide air freight services to Eastern Australian ports.

Elektron PLC fell 3.5% to 8.32 pence an engineered components supplier said first-half revenues fell 27% to £14.2 million from £19.4 million a year ago. Net loss for the first-half was £382,000 or 0.45 pence per diluted share compared to net profit of £170,000 or 0.20 pence per share a year ago.

Halfords Group plc increased 6.5% to 388.20 pence an auto accessories retailer said first-half sales rose 3.4% and comparable sales increased 1.7%. The company estimated pre-tax profit in the first half between £59 million and £61 million.

Hays plc fell 2.3% to 103.70 pence after the recruitment firm said first quarter net fees fell 37% year-on-year but it hinted at signs of stability even though hiring in the public sector appears to be running into trouble.

Hochschild Mining plc added 2.1% to 305.00 pence after the company completed the offering of 30.74 million shares through Goldman Sachs International and J.P. Morgan Cazenove at a price of £2.95 per share, raising $145 million (£90.7 million).

Hunting PLC dropped 0.5% to 523.00 pence after the oil service firm reiterated its business is in line with management expectations.

Ladbrokes plc decreased 7.0% to 168.50 pence after the gambling bookmaker said revenues for the three months ending in September 2009 fell 15%. Group operating profit fell 58% to £22.4 million compared to £52.8 million a year ago. Net debt in September rose to £995 million from £962 million in June 2009.

Lloyds Banking Group plc fell 4.0% to 91.83 pence on the worries that company may convert debt to equity that could raise the government stake to 62% and raise £15 billion in rights offering according to the Financial Times.

The Rank Group Plc rose 3.2% to 92.00 pence after the casinos and bingo outfit said 14 weeks to October 4 revenue increased 2% and comparable revenues are in line with that in 2008 period.

Sceptre Leisure Plc rose 9.0% to 76.33 pence after the gaming machine operator said that the directors do not recommend the payment of a dividend for the fiscal year ended in April 2009.

Ted Baker PLC added 5.0% to 455.00 pence after the designer brand said first-half revenues rose 7% to £76.6 million from £71.6 million a year ago. Net profit for the first-half fell 19% to £4.3 million or 10.4 pence per diluted share compared to net profit of £5.3 million or 12.4 pence per share a year ago.

Vedanta Resources plc increased 3.9% to 2,188.00 pence after the miner said a 15.6% rise in second quarter output of refined zinc and a 27.3% increase in iron ore, its two most important minerals.

Victrex plc increased 4.8% to 785.50 pence after the plastics group said that it expects profits for fiscal 2009 to be in line with market expectations.

FTSE 100 Index Movers

Of the stocks in the FTSE 100 index, 72 increased, 27 declined and 3 were unchanged.

BAE Systems Plc decliners in the FTSE 100 index with a loss of 2.64% followed by losses in Shire Plc of 2.11%, in Segro Plc of 2.06%, in Vodafone Group Plc of 1.75%, in InterContinental Hotels Group Plc of 1.70%.

Burberry Group Plc led gainers in the FTSE 100 index with a rise of 5.55% followed by increase in Tullow Oil Plc of 5.04%, in Kazakhmys Plc of 4.92%, in Antofagasta Plc of 4.64%, in Eurasian Natural Resources Corporation Plc of 4.55%.