Metals, Energy Rally Lifts UK Stocks; Cairn Up

Mayank Mehta
04 Jan, 2010
New York City

UK stocks edged higher as metals added to the gains of the last week. Manufacturing index increased in December and mortgage approvals expanded. Gilts held firm ahead of rate and bond program decision this Wednesday.

[R]4:00 PM London, 11:00 AM New York – UK stocks edged higher as metals added to the gains of the last week. Manufacturing index increased in December and mortgage approvals expanded. Gilts held firm ahead of rate and bond program decision this Wednesday.[/R]

UK stocks edged higher after a rally in metals and energy prices. Metals gained after China and India reported manufacturing expansion. Energy prices increased on record low temperatures in the eastern regions of the U.S. and China and Korea had heavy snowfalls.

In London FTSE 100 Index closed higher 43.05 or 0.8% to 5,455.93 and the pound edged lower to close at $1.614 and to €1.122.

Xstrata Plc increased 3.2% and BHP Billiton increased 1.9% to 2,033 pence. Copper and zinc gained between 1% and 2% in London trading. Copper gained for the sixth day in a row.

The pound gained after a manufacturing index increased to 54.1 in December from 51.8 in November according to the Chartered Institute of Purchasing and Supply and Markit Economics.

Mortgage approvals in December increased to 60,518 according to the data released by the Bank of England.

Gainers & Losers

Cairn Energy PLC advanced 5.4% to 350.60 pence after the oil explorer said it has secured a second drilling rig for its exploration program in the Disko West area, offshore Western Greenland, in second half 2010.

Immunodiagnostic Systems Holdings plc increased 4.7% to 780.00 pence after the diagnostics testing kit maker said that Technogenetics s.r.l. of Milan, Italy has signed a five year distribution agreement.

Lifeline Scientific, Inc closed unchanged at 105.00 pence after the medical technology group said it estimates a full-year pre-tax profit, compared to a loss last year on better than expected results in the second half.

The Royal Bank of Scotland Group plc added 4.5% to 30.53 pence said that it had reached an agreement in principle for the sale of its 99.37% holding in Pakistan to MCB Bank Limited.

Radicle Projects Plc fell 0.6% to 3.85 pence an agricultural firm said full-year revenues fell 45% to £0.62 million from £1.13 million a year ago. Net loss for the full-year was £6.13 million or 32.15 pence per diluted share compared to net loss of £2.35 million or 12.33 pence per share a year ago.

Sportech PLC increased 1% to 48.50 pence after the football gambling pools firm amended agreement with Lloyds Banking Group to revise its banking facilities of £90.75 million, comprising £87.75 million of senior facility term loans and a £3.0 million working capital facility.

Staffline Recruitment Group plc climbed 3.2% to 80.00 pence after the recruitment and training specialist said the board now confirmed that earnings for the full year will be in line with upwardly revised market expectations.