Cookson, Yell, HSBC Up in London

Mayank Mehta
10 Nov, 2009
New York City

UK stocks were flat after HSBC and Barclays indicated diverging results. Schroders Plc assets under management increased more than expected. Yell Group plans to raise

[R]4:00 PM London, 11:00 AM New York – UK stocks were flat after HSBC and Barclays indicated diverging results. Schroders Plc assets under management increased more than expected. Yell Group plans to raise £660 million in an underwritten offering. Cookson Group surged after earnings are expected to be near its upper end of guidance.[/R]

UK stocks were mixed after HSBC and Barclays reported diverging results reflecting their underlying businesses.

Barclays said nine months profit fell 28.7% and in the latest quarter ending in September dropped 54% to £1.08 billion from £2.33 billion.

HSBC indicated that on lower loan losses the net income the latest quarter ending in September was “significantly ahead” of the comparable period a year ago.

Media reports in London suggest that troubled Lloyds Banking Group plans additional job cuts of 4,300 and transfer 680 as it reorganizes its insurance and retail segments.

In London FTSE 100 Index closed higher 9.20 or 0.1% to 5,244.38 and the pound edged lower to close at $1.671 and edged lower to close at €1.115.

Gainers & Losers

888 Holdings Public Limited Company fell 1.6% to 96.40 pence after the online poker group said third quarter total operating income $61 million demonstrating resilient trading during the historical seasonally quiet summer period.

Afren Plc declined 7.5% to 83.00 pence after the Africa-focused oil explorer proposed to raise approximately $200 million through a rights offering.

Babcock International Group PLC decreased 5.1% to 609.00 pence an engineering support services company said first-half revenues fell 2% to £923.0 million from £940.6 million a year ago. Net profit for the first-half rose 93% to £53.0 million or 23.04 pence per diluted share compared to net profit of £27.5 million or 11.87 pence per share a year ago.

Barclays PLC fell 2.5% to 334.20 pence after the global financial services provider said nine months net profit fell 28.7% to £2.73 billion or 23.9 pence per diluted share compared to net profit of £3.83 billion or 54.7pence per share a year ago.

Beazley Group Plc fell 0.6% to 109.00 pence after freight forwarder expanded into marine underwriting to offer professional liability and logistics coverage.

Central African Mining & Exploration Company plc closed unchanged at 20.00 pence.

Cookson Group plc surged 11.2% to 438.00 pence after the engineer and ceramics group offered positive outlook for the second half.

CRH plc decreased 3.3% to 17.22 pence after the cement maker said poor weather costs related to restructuring is likely to drive the earnings lower in the fourth quarter.

Futura Medical plc plunged 11.3% to 38.35 pence.

HSBC Holdings plc increased 3.8% to 718.70 pence after the bank said third quarter pre-tax loss of $2.27 billion compared to pre-tax loss of $315 million a year ago. Operating loss was $1.50 billion compared to operating income of $950 million a year ago.

Imperial Tobacco Group PLC added 3.2% to 1,887.00 pence an international tobacco company said full-year revenues rose 29% to £26.5 billion from £20.5 billion a year ago. Net profit for the full-year rose 55% to £663 million or 65.3 pence per diluted share compared to net profit of £428 million or 50.4 pence per share a year ago.

Logica Plc closed unchanged at 123.80 pence.

Morgan Sindall plc the construction and regeneration group increased 4% to 573.00 pence.

Northern Foods plc rose 2.1% to 66.40 pence after the food products company said first-half revenues fell 0.4% to £466.9 million from £468.6 million a year ago. Net profit for the first-half was £12.9 million or 2.76 pence per diluted share compared to net loss of £17.1 million or 3.54 pence per share a year ago.

Randgold Resources Ltd fell 3.8% to 4,596.00 pence after the gold miner is to fast-track its Gounkoto project after a scoping study.

Schroders plc increased 3.1% to 1,187.00 pence an asset manager said third quarter pre-tax profit fell 19% to £57.8 million compared to net profit of £71.5 million a year ago.

Vodafone Group Plc fell 3.3% to 133.35 after the mobile telecommunications company said first-half revenues rose 9.3% to £21.76 billion from £19.90 billion a year ago. Net profit for the first-half rose 118% to £4.8 billion or 9.14 pence per diluted share compared to net profit of £2.2 billion or 4.02 pence per share a year ago.

Yell Group plc declined 0.1% to 47.91 pence after the yellow pages group said to raise gross proceeds of £660 million through the issue of 1.57 billion new ordinary shares at 42 pence per new ordinary share.

FTSE 100 Index Movers

Of the stocks in the FTSE 100 index, 37 increased, 63 declined and 2 were unchanged.

Barclays Plc decliners in the FTSE 100 index with a loss of 4.83% followed by losses in Range Resources Corporation of 3.39%, in Fresnillo Plc of 2.74%, in Antofagasta Plc of 2.02%, in InterContinental Hotels Group Plc of 2.02%.

HSBC Holdings Plc led gainers in the FTSE 100 index with a rise of 4.03% followed by increase in Imperial Tobacco Group Plc of 2.90%, in Schroders Plc of 2.63%, in Severn Trent Plc of 2.17%, in Smith & Nephew Plc of 2.10%.