UK Stocks Rebound; Dragon Oil surges

123jump.com Staff
02 Nov, 2009
New York City

UK stocks closed higher after mining and resource stocks regained some of the lost ground. UAE based ENOC agreed to acquire the remaining stake in Dragon Oil for

[R]4:00PM London, 11:00 AM New York – UK stocks closed higher after mining and resource stocks regained some of the lost ground. UAE based ENOC agreed to acquire the remaining stake in Dragon Oil for £1.1 billion. UK manufacturing expanded in October. Allied Irish plc and Royal Bank of Scotland fell on the worries of more asset sale and additional shareholder dilution.[/R]

The UK manufacturing index increased in October to 53.7 from 49.9 in September according to the latest survey conducted by the Chartered Institute and Supply and Markit Economics. The index indicates that manufacturing is expanding as the domestic and international demand grows.

In London FTSE 100 Index closed higher 67.08 or 1.3% to 5,105.99 and the pound edged lower to close at $1.635 and to close at €1.107.

Dragon Oil surged the UAE based ENOC offered to acquire the rest of the stake in the company for £1.1 billion.

Gainers & Losers

Allied Irish Bank Plc dropped 11% to 1.68 euros after its Chairman indicated that negotiations with the EU regulators may impose onerous conditions.

Anite plc climbed 4.4% to 35.50 pence after the software solutions provider to the wireless testing and travel reservation system operator appointed Richard Amos as Group Finance Director.

Babcock International Group PLC the support services firm fell 1.0% to 602.00 pence.

BowLeven PLC rose 0.2% to 87.50 pence after the oil and gas exploration group focused on Africa said a 100% equity interest in both the East Orovinyare offshore block in Gabon, which contains an existing oil discovery that it is seeking to develop, and the Epaemeno Block which is 1,340 km² of exploration acreage in onshore Gabon which is situated next to recent discoveries in the adjoining blocks.

Chloride Group PLC added 1.4% to 163.80 pence after the power protection company said first-half sales rose 0.3% to £152.7 million from £152.3 million a year ago. Net profit for the first-half fell 40% to £7.1 million or 2.77 pence per diluted share compared to net profit of £11.8 million or 4.65 pence per share a year ago.

Chariot Oil & Gas Limited close unchanged at 27.50 pence after the debt free exploration firm said first-half pre-tax loss and said its assets in West Africa are attracting increasing interest following the successes in the region of companies like Tullow Oil PLC.

Dragon Oil Plc increased 8.6% to 445.50 pence after the oil and gas firm Emirates National Oil Company Limited LLC announced that they have reached agreement on the terms of the recommended acquisition for cash of the entire issued and to be issued share capital of Dragon Oil not already owned by ENOC.

The bid is at 455 pence for the 48.5% stake that it does not own. The offer price values the entire issued and to be issued share capital of the company at approximately £2.4 billion.

GlaxoSmithKline plc decreased 1.5% to 1,230.50 pence after the global healthcare group said Human Genome Sciences, Inc. today announced that Benlysta™ met the primary endpoint in BLISS-76, the second of two pivotal Phase 3 trials in seropositive patients with systemic lupus erythematosus.

Max Petroleum Plc increased 4.2% to 18.50 pence after the energy explorer commenced its field development in the Republic of Kazakhstan.

Metrodome Group plc plunged 20% to 1.00 pence after the audiovisual entertainment firm appointed Mark Webster as Executive Chairman with mergers and acquisition responsibilities.

Randgold Resources Ltd advanced 4.1% to 4,124.00 pence said it has completed the acquisition of Moto Goldmines acquisition.

The Royal Bank of Scotland Group plc decreased 6.9% to 39.00 pence after the troubled lender prepares to sell more assets and bank branches to meet EU directive that is still not final. The lender is required to shrink to meet the European Union bailout conditions after it received 20 billion pounds of UK government support.

Sanderson Group PLC the software and IT services business surged 37.4% to 21.30 pence.

TeleCity Group Plc climbed 0.9% to 338.00 pence after the data centre provider said trading remains strong with revenue growth continuing in line with management’s expectations.

Vantis plc plunged 14.4% to 52.20 pence after the business and tax advisory group said full-year revenue fell £90.0 million from £92.2 million a year ago.

Yell Group plc the directories group increased 4.7% to 53.70 pence.

FTSE 100 Index Movers

Of the stocks in the FTSE 100 index, 66 increased, 35 declined and 1 were unchanged.

The Royal Bank of Scotland Group Plc decliners in the FTSE 100 index with a loss of 8.04% followed by losses in Liberty International Plc of 3.44%, in Hammerson Plc of 3.40%, in Lloyds Banking Group Plc of 3.38%, in SEGRO Plc of 3.26%.

Randgold Resources Ltd. led gainers in the FTSE 100 index with a rise of 5.61% followed by increase in Eurasian Natural Resources Corporation Plc of 5.28%, in Lonmin Plc of 4.85%, in Vedanta Resources Plc of 4.06%, in Rio Tinto Plc of 4.03%.