Weak UK Stocks; National Express Plunges 26%

Mayank Mehta
16 Oct, 2009
New York City

UK stocks struggled on the weakness in financial and resource stocks. National Express and Stagecoach dropped sharply after a private equity led merger talks were discontinued. The pound rose 2.1% against the euro in the week. Clinton Cards advanced after it estimated better outlook.

[R]4:00PM London, 11:00 AM New York – UK stocks struggled on the weakness in financial and resource stocks. National Express and Stagecoach dropped sharply after a private equity led merger talks were discontinued. The pound rose 2.1% against the euro in the week. Clinton Cards advanced after it estimated better outlook in the near future.[/R]

UK stocks edged lower after as commodities struggled and banking and financials declined. National Express Group Plc and Stagecoach Group Plc both dropped sharply after potential deal that involved a buyout group fell apart.

In London FTSE 100 Index closed lower 34.04 or 0.6% to 5,188.91 and the pound edged higher to close at $1.634 and at 1.098 euros. The pound gained 0.9% against the euro and surged 2.1% in the week.

Gainers & Losers

Aveva Group Plc advanced 4.3% to 1,017.00 pence after the engineering project designer said that trading in the first half has been slightly ahead of expectations.

Admiral Group plc decreased 0.4% to 1,088.00 pence after the car insurance business said third quarter group revenues increased 22% to £ 294 million.

BlueBay Asset Management plc added 1.3% to 347.60 pence after the fixed income fund manager said Friday that its estimated assets under management were $31.1 billion at the end of September, a 28% increase from the end of June.

Chrysalis Group PLC fell 0.9% to 100.00 pence an independent music company said that for fiscal 2009 it expects results to be slightly ahead of the management expectations.

Clinton Cards plc the greeting cards retailer surged 15.0% to 40.25 pence after it released earnings.

Lloyds Banking Group plc increased 2.9% to 94.10 pence said that it has reached an agreement in principle to sell the Halifax Estate Agencies Ltd business which operates through a network of 218 offices, including 93 franchise operations, to LSL Property Services plc.

National Express Group PLC plunged 26.1% to 348.00 pence said that the company and Cosmen family and CVC Capital are no longer in merger talks. National Express plans to issue additional shares to repay debt.

Randgold Resources Ltd fell 0.4% to 4,546.00 pence after the engaged in gold mining, exploration and related activities said Moto Goldmines Limited announced that the court-approved plan of arrangement under division 5 of part 9 of the business corporations act to effect the business combination between Moto and Randgold, which was announced on 5 August 2009.

FTSE 100 Index Movers

Of the stocks in the FTSE 100 index, 29 increased, 72 declined and 1 were unchanged.

J Sainsbury Plc decliners in the FTSE 100 index with a loss of 4.03% followed by losses in Burberry Group Plc of 3.38%, in Tui Travel Plc of 3.09%, in British Airways Plc of 3.08%, in Kazakhmys Plc of 2.86%.

Experian Plc led gainers in the FTSE 100 index with a rise of 2.98% followed by increase in G4S Plc of 2.76%, in Petrofac Limited of 1.91%, in Lloyds Banking Group Plc of 1.85%, in Tullow Oil Plc of 1.81%.