UK Inflation Falls; ITV Bond Offering

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

UK stocks closed lower after the inflation data showed weak consumer demand. September price index fell at a faster pace than in the previous twelve months ending in August. ITV completed its offering of 135 million. Booker plc first half net increased 12.3%.

[R]4:00PM London, 11:00 AM New York – UK stocks closed lower after the inflation data showed weak consumer demand. September price index fell at a faster pace than in the previous twelve months ending in August. ITV completed its offering of 135 million. Booker plc first half net increased 12.3%.[/R]

Stocks in London traded lower on weak financials and investors sold stocks in Marks & Spencer after it presented its plan for growth at Investors Day.

In London FTSE 100 Index closed lower 40.21 or 0.7% to 5,169.96 and the pound edged higher to close at $1.583 and closed unchanged at 1.068 euros.

The consumer prices in September increased 1.1% from a year ago month and 1.6% from August according to the latest data from the Office for National Statistics. The retail price index declined 1.4% for twelve months ending in the months compared to a fall of 1.3% in the period ending in August.

Gainers & Losers

AEA Technology plc surged 11.8% to 33.00 pence after the energy data management consultancy said its first-half trading was slightly ahead of its estimates and U.S market is offering the company growth opportunities.

Bellway plc added 0.8% to 812.00 pence after the home builder said full-year revenues fell 40.5% to £683.8 million from £1.15 billion a year ago. Net profit for the full-year fell 83% to £20.3 million or 17.6 pence per diluted share compared to net profit of £119.5 million or 104.1 pence per share a year ago.

Booker Group plc fell 4.9% to 43.25 pence after the cash and carry firm was downgraded to “add” from “buy” at Evolution Securities Ltd. Booker also reported first half profit increased 12.3% to 24.7 million or 1.62 pence compared to 22 million or 1.47 pence a share. The food wholesaler reported sales increase of 7.7% to £1.6 billion.

Carillion plc added 1.1% to 290.30 pence after the telecom infrastructure provider said its joint venture has signed a 7-year contract worth £1 billion to provide nationwide support services with BT for its local access network business.

Connaught plc rose 0.9% to 430.90 pence after the social housing and services group said full-year revenues rose 19% to £660 million from £553 million a year ago. Net profit for the full-year rose 15% to £17.5 million or 13.5 pence per diluted share compared to net profit of £15.2 million or 12.2 pence per share a year ago.

Ferrexpo plc fell 0.8% to 157.60 pence after the Ukrainian iron ore producer said third-quarter pellets production from its own material declined 0.8% compared to a year ago quarter.

ITV plc increased 8.3% to 51.30 pence after the troubled broadcaster plans to raise £135 million through a bond issue due in 2016 to refinance its debt. The debt coupon pays 4% interest rate and is convertible at 70.44 pence a share price. The yield on the broadcaster debt has narrowed recently as the bond markets have improved and the advertising market has rebounded.

JJB Sports plc slipped 5.0% to 33.00 pence after the sports retailer supplying branded sports and leisure clothing, footwear and accessories was downgraded to “sell” from “hold” at Seymour Pierce.

Lloyds of London decreased 2.1% to 89.72 pence after Bloomberg and Reuters reported that the mortgage lender may have to pay as much as £2 billion to exit from the government sponsored asset insurance plan.

Marks & Spencer dropped 4.3% to 346.9 pence after the company looks for new business in faster growing economies of China, India and Eastern Europe and look for online food store in the UK. The company in a presentation to investors said that it plans to become multi channel focused and look to international markets for expansion.

The retailer plans to save £150 million a year through warehouse consolidation and plans to open a dedicated warehouse for its online food store in Midlands.

The retailer operates 14 stores in India and 76 stores in China and plans to add at least 50 new stores in India in the next five years.

Porvair plc rose 2.8% to 72.50 pence after the filter company confirmed that it is positive in the three months to October 9, in line with management expectations.

Redstone plc increased 3.3% to 3.88 pence after the IT and telecoms group said that chief financial officer Tim Perks has resigned who led the company’s efforts to sell the telecommunications and mobile divisions.

Sasol Limited an integrated energy and chemicals company rose 1.2% to 39.89 pence.

Serco Group plc rose 0.1% to 517.50 pence said that Chairman Kevin Beeston plans to step down as non-executive chairman and will retire from the company after its annual general meeting in May 2010.

Whitbread PLC advanced 1.8% to 1,314.00 pence after the operator of hotels, restaurants and coffee shops said first-half revenues rose 3.1% to £703.3 million from £682.2 million a year ago. Net profit for the first-half rose 81% to £73.6 million or 42.27 pence per diluted share compared to net profit of £40.6 million or 23.25 pence per share a year ago.

FTSE 100 Index Movers

Of the stocks in the FTSE 100 index, 19 increased, 80 declined and 3 were unchanged.

Marks and Spencer Group Plc decliners in the FTSE 100 index with a loss of 4.28% followed by losses in Barclays Plc of 3.39%, in Smith & Nephew Plc of 3.18%, in Next Plc of 2.93%, in Prudential Plc of 2.65%.

Smiths Group Plc led gainers in the FTSE 100 index with a rise of 2.16% followed by increase in Lonmin Plc of 1.93%, in British American Tobacco Plc of 1.23%, in Fresnillo Plc of 1.09%, in Old Mutual Plc of 0.82%.