UK Stocks Rebound; DS Smith, Premier Farnell Up

Mayank Mehta
10 Dec, 2009
New York City

UK stocks edged higher after the Bank of England left its key lending rate at 0.5%. The central bank also left its plan to purchase

[R]4:00 PM London, 11:00 AM New York – UK stocks edged higher after the Bank of England left its key lending rate at 0.5%. The central bank also left its plan to purchase £220 billion unrevised till the next meeting in February. DS Smith soared 13% on better outlook. Premier Farnell gained 8% on positive comments.[/R]

In London FTSE 100 Index closed higher 25.62 or 0.4% to 5,229.51 and the pound edged lower to close at $1.627 and at €1.103.

The Bank of England left its key lending rate unchanged at 0.5% and did not revise its plan to purchase £220 billion of government bonds.

Ireland’s government said it plans to cut salaries of employees including nurses, teachers and police and emergency staff to lower its swelled budget deficit of 11.7%.

Iceland also lowered its key lending rate to 10%.

Gainers & Losers

Begbies Traynor Group plc the professional services provider increased 5.2% to 100.00 pence.

Clipper Windpower PLC surged 18.4% to 173.00 pence after the wind turbine generator received an offer to acquire 10.2% stake in the company from United Technologies.

Consort Medical plc dropped 0.2% to 350.25 pence after the healthcare company said first-half revenues fell 4% to £61.5 million from £64.1 million a year ago. Net profit for the first-half fell 16% to £3.7 million or 12.6 pence per diluted share compared to net profit of £4.4 million or 15.0 pence per share a year ago.

DS Smith plc surged 9.2% to 124.00 pence after the packaging and office products supplier said first-half revenues fell 8% to £1.01 billion from £1.10 billion a year ago. Net profit for the first-half rose 35% to £23.4 million or 5.9 pence per diluted share compared to net profit of £17.3 million or 4.4 pence per share a year ago.

Eaga plc the energy efficiency company gained 1.8% to 141.30 pence.

GeoPark Holdings Limited increased 5.3% to 353.00 pence after the Latin American oil and gas group said the successful discovery of gas in a new reservoir in its newly drilled field in Chile.

International Greetings plc closed unchanged at 72.50 pence after the greetings card group said first-half revenues fell 5.3% to £93.8 million from £99.1 million a year ago. Pre-tax profit for the first-half was £0.8 million compared to pre-tax loss of £6.8 million a year ago.

Kazakhmys PLC climbed 0.4% to 1,230.00 pence and the copper miner agreed with the National Welfare Fund Samruk Kazyna JSC to sell stake of additional 25% to 50% for a consideration of $681 million.

Low & Bonar plc the industrial fabric maker increased 7.8% to 34.50 pence.

Mulberry Group plc surged 15.4% to 142.00 pence after the luxury fashion brand said first-half revenues rose 16% to £32.3 million from £27.8 million a year ago. Net profit for the first-half rose 14.6% to £1.02 million or 1.8 pence per diluted share compared to net profit of £0.89 million or 1.5 pence per share a year ago.

Premier Farnell plc gained 3.7% to 164.50 pence an international electronic products distributor said third quarter revenues fell 4.4% to £199.8 million from £209.1 million a year ago. Net profit for the quarter fell 38% to £7.6 million or 2.1 pence per diluted share compared to net profit of £12.3 million or 3.3 pence per share a year ago.

Sports Direct International plc fell 0.9% to 105.00 pence after the sporting goods retailer said first-half revenues rose 10% to £756.9 million from £687.7 million a year ago. Net profit for the first-half fell 41% to £38.9 million or 6.46 pence per diluted share compared to net profit of £65.7 million or 11.57 pence per share a year ago.

United Utilities Group PLC the engaged in water business decreased 0.4% to 491.00 pence.