UK Stocks Rise; Spice Plunges 20%

Mayank Mehta
14 Dec, 2009
New York City

UK stocks edge higher on a rally in banks. Lloyds Banking Group raised

[R]4:00 PM London, 11:00 AM New York – UK stocks edge higher on a rally in banks. Lloyds Banking Group raised £13.5 billion in a rights offering. Spice Plc plunged 20% after it reported first half loss. Miners gained as commodities rebounded. Abu Dhabi offered $10 billion in emergency funds to Dubai World.[/R]

UK stocks edged higher after banks rallied and Lloyds Banking Group completed record rights offering and raised £13.5 billion.

In London FTSE 100 Index closed higher 48.23 or 0.9% to 5,309.80 and the pound edged lower to close at $1.622 and at €1.109.

Abu Dhabi offered $10 billion in emergency funding to Dubai World. The bailout will help the troubled real estate conglomerate to repay $4.1 billion of Islamic bonds that are due today and $6 billion to repay suppliers and contractors and loan interest.

Dubai World is seeking a standstill agreement with banks to postpone or delay as much as $25 billion of debt.

Gainers & Losers

BAE Systems Plc increased 1.1% to 346.6 pence after company and Navistar International convinced U.S. Government Accountability Office to reopen the contracts worth $3 billion awarded to Oshkosh Corp for armored vehicles.

Bunzl plc fell 0.2% to 655.50 pence after the distribution and outsourcing firm reiterated the annual revenues outlook and expects revenues to increase 11% compared to a year ago.

Cadbury plc added 0.2% to 792.50 pence after the chocolate maker rejected the offer from Kraft and said that it undervalues the company.

Chemring Group plc dropped 0.6% to 2,740.00 pence after the military decoy specialist said that its US subsidiary was selected to provide radar kits to the Canadian Armed Forces.

Great Portland Estates plc gained 0.9% to 270.60 pence said that through two separate joint ventures it has exchanged contracts, subject to freeholders consent, to acquire two long leasehold properties on Regent Street, London, W1 for £35 million from clients of F&C REIT.

Lloyds Banking Group plc fell 0.4% to 55.99 pence after the largest UK mortgage lender raised £13.5 billion in a rights offer and sold additional shares that were not sold in the offering at 55.5 pence each.

Mears Group PLC the housing repair firm closed unchanged at 270.00 pence.

Mouchel Group plc the road and infrastructure support contractor surged 23.6% to 235.00 pence after the company confirmed receiving two separate proposals from VT Group Plc. The company rejected both offers and said it undervalues the company.

Optos Plc the retinal imaging company closed unclosed at 92.50 pence.

RWS Holdings plc closed unclosed at 290.00 pence an intellectual property group said full-year revenues rose 2.2% to £55.3 million from £54.1 million a year ago. Net profit for the full-year rose 51% to £14.5 million or 34.3 pence per diluted share compared to net profit of £9.6 million or 22.7 pence per share a year ago.

Spice plc the shares in support services group plunged 20.4% to 56.50 pence after it reported a loss in the first half on an impairment charges.

Ten Alps plc added 6.8% to 27.77 pence after the factual media company said first-half revenues fell 4.6% to £35.4 million from £37.1 million a year ago. Net profit for the first-half rose 54% to £1.32 million or 2.04 pence per diluted share compared to net profit of £855,000 or 1.62 pence per share a year ago.

United Business Media Limited added 2.2% to 444.60 pence said that it has acquired Virtual Press Office from its private shareholders on behalf of PR Newswire for an initial cash consideration of $6.5 million, with a further performance-related consideration of up to $3.5 million payable over three years.

Whitbread PLC increased 3.2% to 1,373.00 pence after the hotel, pub and restaurant owner said third quarter sales rose 6.7% and like-for-like sales rose 0.3%. Premier Inn sales rose 3.5% and like-for-like sales fell 3.1%. Pub restaurants sales rose 2.8% and like-for-like sales rose 2.3%. Costa sales rose 20.7% and like-for-like sales rose 6.7%. Whitbread hotels and restaurants sales rose 3.1% and like-for-like sales fell 1.0%.

FTSE 100 Index Movers

Of the stocks in the FTSE 100 index, 75 increased, 27 declined and none were unchanged.

Rexam Plc decliners in the FTSE 100 index with a loss of 2.41% followed by losses in Lloyds Banking Group Plc of 1.89%, in Wolseley Plc of 1.70%, in Hammerson Plc of 1.25%, in Reckitt Benckiser Group Plc of 1.22%.

London Stock Exchange Group Plc led gainers in the FTSE 100 index with a rise of 9.94% followed by increase in Standard Chartered Plc of 4.34%, in Whitbread Plc of 3.76%, in Lonmin Plc of 3.74%, in Antofagasta Plc of 3.22%.