UK GDP Decline Revised; Hardy Oil Surges

Mayank Mehta
22 Dec, 2009
New York City

UK GDP decline in the third quarter was revised to 0.2% from the previous estimate of 0.3% and third quarter unemployment rate increased to 7.8%. Hardy Oil and Gas Plc in partnership with Reliance in India discovered third natural gas field in the Bay of Bengal offshore field.

[R]4:00 PM London, 11:00 AM New York – UK GDP decline in the third quarter was revised to 0.2% from the previous estimate of 0.3% and third quarter unemployment rate increased to 7.8%. Hardy Oil and Gas Plc in partnership with Reliance in India discovered third natural gas field in the Bay of Bengal offshore field.[/R]

In London FTSE 100 Index closed higher 56.04 or 1.1% to 5,350.03 and the pound edged lower to close at $1.601 and edged higher to close at €1.119.

UK GDP Contracts at 0.2%

The UK GDP contracted by 0.2% in the third quarter of 2009. This revised from fall of 0.3% in previous estimate of GDP. GDP remains 5.1% lower than the third quarter of 2008. Inventories continued to reduce, down £4.6 billion on the quarter.

Third quarter 2009 unemployment rate increased 0.1 percentage point to 7.8% compared to last quarter.

Gainers & Losers

888 Holdings Plc added 0.8% to 112.40 pence after the Online poker and casino group said that it has entered, through a wholly owned subsidiary, into an agreement to acquire the assets comprising the Wink Online Bingo business from Daub Limited. The total maximum consideration payable by the company to the vendor is capped at £59.7 million.

Alba Mineral Resources Plc dropped 2.8% to 1.22 pence after the mining company decided to relinquish seven of the eight nickel licenses it holds in Sweden.

The company has retained the Kälen licence in Västerbotten. However, it is due to expire in January 2010 and there is currently no intention to renew it. The status of the licenses in Ireland, Scotland and Mauritania remain unchanged.

Carillion plc climbed 0.6% to 300.70 pence and company’s subsidiary was selected for a construction project in Toronto, Canada. The company will also carry out the construction work and provide maintenance and life-cycle repair services over the 30-year concession period that together are expected to generate £157 million of revenue for company.

Craneware plc the hospital management software supplier added 2.2% to 334.95 pence.

Gem Diamonds Limited gained 4.1% to 206.20 pence.

Hardy Oil and Gas plc surged 18.6% to 229.50 pence after the oil and gas explorer with assets in India and Nigeria discovered third gas filed in the Bay of Bengal in partnership with Reliance Industries. Hardy has 10% stake in the field which is estimated to have recoverable natural gas of 10 trillion cubic feet.

Hot Tuna (International) Plc surged 12.7% to 0.31 pence after the surf wear and fashion brand specialist said full-year revenues rose 2% to £1.14 million from £1.12 million a year ago. Net loss for the full-year was £2.27 million or 1.18 pence per diluted share compared to net loss of £5.78 million or 6.47 pence per share a year ago.

MDY Healthcare plc fell 5.8% to 32.00 pence after the medical field investment management company said full-year revenues rose 231% to £136,000 from £41,000 a year ago. Net loss for the full-year was £1.73 million or 11.15 pence per diluted share compared to net loss of £3.75 million or 25.63 pence per share a year ago.

WorldSpreads Group plc plunged 10.0% to 55.00 pence after the spread-betting firm said first-half pre-tax profit from continuing operations increased 22% to €1.67 million from restated €1.37 million last year.