UK Stocks Resume Advance; Burberry Rises

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

UK stocks resumed their advance on the back of a rise in commodities prices. Unemployment rate increased to 7.9% in the three months to August. The pound edged higher. Burberry increased after it reported 6.1% increase in first half sales. Punch Taverns plunged 13% on a net loss.

[R]4:00PM London, 11:00 AM New York – UK stocks resumed their advance on the back of a rise in commodities prices. Unemployment rate increased to 7.9% in the three months to August. The pound edged higher. Burberry increased after it reported 6.1% increase in first half sales. Punch Taverns plunged 13% on a net loss.[/R]

UK stocks surged after commodities prices gained in London and earnings were ahead of expectations in the U.S. Unemployment claims declined in the three months to August but a record number of people are seeking benefits since April 1997.

In London FTSE 100 Index closed higher 90.54 or 1.7% to 5,244.69 and the pound edged higher to close at $1.595 and edged lower to close at 1.070 euros.

The unemployment rate increased to 7.9% in the three months to August, up 0.3% from the previous three months and up 2.1% from a year ago.

The number of unemployed persons increased 88,000 to the quarter to August and people claiming benefits increased 20,800 in September according to the latest statistics from the Office for National Statistics.

In all, 1.63 million people are seeking benefits, record since April 1997.

Gainers & Losers

Air Partner plc rose 1.5% to 599.00 pence, an aviation provider said full-year pre-tax profit declined 90% on weak market conditions and said its current trading had stabilized at the weaker levels experienced in the second half.

BAE Systems plc advanced 1.2% to 321.50 pence after the defense contractor contributed £100 million in the third quarter to reduce its pension deficit.

Booker Group plc decreased 5.7% to 41 pence after the food wholesaler said first-half sales rose 6.7% to £1.6 billion from £1.5 billion a year ago. Net profit for the first-half rose 12.3% to £24.7 million or 1.62 pence per diluted share compared to net profit of £22.0 million or 1.47 pence per share a year ago.

Burberry Group plc added 4.9% to 563.50 pence after the fashion group said first-half revenues rose 6.1% to £572 million from £539 million a year ago.

Dana Petroleum plc climbed 1.9% to 1,418.00 pence after the company discovered offshore West of Shetland, U.K. and is currently evaluating the prospects of oil in the field.

DS Smith plc surged 13.3% to 134.60 pence after the cardboard and paper supplier forecast a lower pretax profit in the first half but higher than expectations due to a reduction in operating costs.

Diageo plc fell 1.3% to 963.00 pence.

Eaga plc fell 0.9% to 142.80 pence after the green energy support services firm said trading during the year is in-line with the board''s expectations and was confident in the outlook for the rest of the year.

Experian PLC the credit report services provider climbed 2.8% to 544.50 pence.

Fresnillo Plc, a non-ferrous minerals miner increased 1.4% to 849.50 pence.

Interserve Plc rose 7.3% to 255.30 pence after the services, maintenance and building group said that it has won a £40 million contract to create an industrial development in Jebel Ali through its Dubai associate company Khansaheb Civil Engineering.

Leisure & Gaming Plc rose 3.3% to 10.85 pence after the online betting group said third quarter gross profit rose €1.0 million from €0.9 million a year ago.

N Brown Group plc added 1.5% to 258.00 pence after the home shopping firm said first-half sales rose 5% to £339 million from £323 million a year ago. Pre-tax profit for the first-half fell 13.5% to £33.3 million compared to net profit of £38.5 million a year ago.

Old Mutual plc added 1.8% to 113.00 pence after the South African insurer offered to pay 1.81 billion rand ($248 million) in new shares for the 26.5% of South African financial services company Mutual & Federal.

Punch Taverns plc plunged 13.2% to 100.50 pence after the pub company said full-year revenues rose 7.7% to £1.44 billion from £1.56 billion a year ago. Net loss for the full-year was £176.4 million or 56.1 pence per diluted share compared to net loss of £64.7 million or 24.2 pence per share a year ago.

Rio Tinto plc rose 5.1% to 2,994.00 pence after the mining giant after it reported higher third quarter production on the sustained iron ore demand from China based steelmakers.

Vertu Motors Plc rose 2.6% to 49.80 pence after the motor retailer said first-half sales fell 5% to £401.3 million from £423.5 million a year ago. Net profit for the first-half rose 49% to £2.04 million or 1.40 pence per diluted share compared to net profit of £1.37 million or 1.49 pence per share a year ago.

FTSE 100 Index Movers

Of the stocks in the FTSE 100 index, 79 increased, 22 declined and 1 were unchanged.

International Power Plc decliners in the FTSE 100 index with a loss of 2.85% followed by losses in Thomas Cook Group Plc of 2.36%, in Diageo Plc of 2.05%, in British Sky Broadcasting Group Plc of 1.64%, in United Utilities Group Plc of 1.24%.

Kazakhmys Plc led gainers in the FTSE 100 index with a rise of 9.42% followed by increase in Cairn Energy Plc of 8.62%, in Vedanta Resources Plc of 7.71%, in Xstrata Plc of 7.68%, in Barclays Plc of 6.56%.