Property Stocks Gain in UK

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

UK stocks traded sideways and commodities prices were volatile. Real estate companies closed higher after a private research reported a rise in commercial properties values in October. British Air signed a definitive merger agreement with Spain based Iberia. Tullett Prebon plunged 12%.

[R]4:00PM London, 11:00 AM New York – UK stocks traded sideways and commodities prices were volatile. Real estate companies closed higher after a private research reported a rise in commercial properties values in October. British Air signed a definitive merger agreement with Spain based Iberia. Tullett Prebon plunged 12%.[/R]

Real estate companies rallied in London and stock market indexes traded sideways in the session after a private research company indicated rising values in October.

In London FTSE 100 Index added 19.88 or 0.4% to 5,296.38 and the pound edged higher to close at $1.663 and edged higher to close at €1.121.

Investment Property Databank Ltd said the average commercial property value increased 1.9% in October and total return for commercial real estate increased 2.5% in the month.

British Land Company and Liberty International Plc increased more than 2%.

Gainers & Losers

Balfour Beatty plc increased 2.0% to 274.50 pence after the support services contractor said that it is to acquire SpawMaxwell Company, the largest interior construction contractor in Texas and the sixth largest general contractor in Houston. The business is acquired for cash of up to $25 million.

BG Group plc added 1.7% to 1,101.00 pence after the oil giant today confirmed that in the Santos Basin pre-salt, offshore Brazil, hydrocarbons had been encountered in a new well known as Tupi North-East (3-BRSA-755A-RJS or 3-RJS-662A) on block BM-S-11.

British Airways Plc advanced 1.2% to 217.60 pence and it agreed to merge with Spain based Iberia airlines. The BA shareholders will control 56% of the combined company and the Iberia shareholders will control 46%.

Centrica plc rose 0.2% to 245.00 pence an integrated energy company said the European Commission has cleared the proposed purchase by Electricité de France SA of the company’s majority holding in its Belgian business, SPE, through the purchase by the EDF Group of Segebel SA.

Cobham plc the defence group fell 0.5% to 222.40 pence.

Electrocomponents plc fell 0.5% to 159.20 pence after the distributor of electronic, electrical and industrial supplies said first-half revenues fell 8.4% to £447.2 million from £488.1 million a year ago. Net profit for the first-half fell 58% to £17.1 million or 3.9 pence per diluted share compared to net profit of £40.8 million or 9.4 pence per share a year ago.

Go-Ahead Group PLC gained 1.2% to 1,380.00 pence.

Hornby Plc rose 1.4% to 142.00 pence after an international hobby products group said first-half revenues rose 5.4% to £25.5 million from £24.2 million a year ago. Net profit for the first-half fell 64.7% to £415,000 or 1.08 pence per diluted share compared to net profit of £1.18 million or 3.06 pence per share a year ago.

Rexam PLC decreased 3.1% to 279.90 pence after the canmaker said group results in the period are in line with management expectations.

Tullett Prebon plc plunged 10.9% to 355.40 pence after it said that departed brokers represent 7.5% of total revenues and the company filed a legal suit last month against BGC Partners Inc seeking $1 billion in damages in New York.

Turbo Power Systems Inc the high-speed permanent magnet-based motors and generators for industrial and transportation gained 5.4% to 1.95 pence.

FTSE 100 Index Movers

Of the stocks in the FTSE 100 index, 62 increased, 37 declined and 3 were unchanged.

Resolution Limited decliners in the FTSE 100 index with a loss of 3.65% followed by losses in ICAP Plc of 2.65%, in Eurasian Natural Resources Corporation Plc of 2.59%, in Amec Plc of 2.55%, in Vedanta Resources Plc of 2.47%.

Liberty International Plc led gainers in the FTSE 100 index with a rise of 3.92% followed by increase in The British Land Company Plc of 2.79%, in Johnson Matthey Plc of 2.43%, in Wolseley Plc of 2.34%, in Hammerson Plc of 2.32%.