UK Stocks Trim Gains; Weak Confidence Data

Mayank Mehta
06 Jan, 2010
New York City

UK stocks pared gains after indexes that track consumer confidence and outlook declined. Autonomy Corp increased after it made positive comments. Marks & Spencer declined 7% after it reported lower than expected sales increases.

[R]4:00 PM London, 11:00 AM New York – UK stocks pared gains after indexes that track consumer confidence and outlook declined. Autonomy Corp increased after it made positive comments. Marks & Spencer declined 7% after it reported lower than expected sales increases.[/R]

The gains in the UK stocks were trimmed on weak confidence data. Miners gained after coal, oil and natural gas prices increase and technology companies advanced after second largest software maker Autonomy Corp made positive comments.

In London FTSE 100 Index closed higher 0.98 or 0.02% to 5,523.48 and the pound edged lower to close at $1.594 and to €1.111.

The consumer sentiment index in UK declined from the previous month by five points to 69 in December as the consumers turn cautious during the holiday period. And the index that measures consumers’ expectations six months ahead declined by eight points to 101.
British Retail Consortium said in a statement that consumer products prices at UK retail locations increased 2.2% annual rate in December after rising at 0.2% in November. Food prices increased 3.7%.


Gainers & Losers

Alliance Pharma plc added 4.5% to 27.97 pence after the specialty pharmaceutical company announce that trading during the last few months of the 2009 financial year remained strong. Full year ending in December revenues of approximately £31 million increased 42%.

Autonomy Corp surged 6.1% to 1,560 pence after it estimated earnings per share of $0.97.

Blue Star Capital PLC plunged 11.1% to 4.00 pence after the investment company focused on the Homeland Security sector has entered into a strategic relationship with Washington-based Chertoff Group.

Cape plc added 4.7% to 253.50 pence an energy services group pleased to confirm that it has continued to trade in line with management expectations with activity levels remaining strong during the second half.

Domino's Pizza UK & IRL plc rose 0.8% to 312.50 pence after the pizza delivery company said fourth quarter system sales rose 15.6% to £112.4 million from £97.25 million a year ago. Like-for-like sales in 501 mature stores grew 8.6% for the period from 8.6% in 451 mature stores in the last year.

easyJet plc dropped 0.1% to 363.00 pence after the low-cost airliner Wednesday reported increases in load factor and number of passengers flown in December.

Games Workshop Group Plc surged 19.6% to 305.00 pence after the model and war game retailer announces that pre-tax profits in respect of the year to 30 May 2010 are likely to be materially ahead of current market expectations.

Glanbia Plc increased 1.4% to 2.89 euros after the dairy products makers in Ireland said that annual profits this year may increase 8%.

John Menzies plc added 1.5% to 325.00 pence after the global ground and cargo handling company noted that considering the expected current mix of profits it now expect its effective underlying tax rate for the year to be around 27%. The company also expects that the group net debt at the year-end will be below £140 million.

Lees Foods Plc surged 10.7% to 170.00 pence after the Scottish cake and sweet maker said it anticipates 2009 continuing pre-tax profits to be ahead of market expectations.

Management Consulting Group plc closed unchanged at 18.00 pence after the company estimated 2009 financial year in the range of £280 million to £290 million and underlying operating profit between £28 million and £30 million.

Marks and Spencer Group plc declined 5.3% to 383.10 pence after the retailer of clothing, food and home products said third quarter group sales rose 2.6%. UK sales rose 2.3%, general merchandise sale rose 3.2%, food sales rose 1.3%, UK like for like sales rose 0.8%, general merchandise sale up 1.2%; food sales up 0.4%. Online sales rose 32% and international sales up 6.0%.

Majestic Wine PLC advanced 4.1% to 224.00 pence after the UK comparable same store sales at wine retailer increased 11.7% for the nine weeks ending on January 4.

Next plc fell 0.05% to 2,098.00 pence after the clothing and houseware retailer said second-half total sales rose 4.6% and retail like-for-like including direct sales up 3.2% excluding direct up 1.6%. Total brand sales, excluding VAT, increased 5.2%.

Sportech PLC surged 15.7% to 62.50 pence after the football pools company announce that it has secured distribution deal with Trinity Mirror Group newspapers.

Tarsus Group plc closed unchanged at 105.00 pence after the events and conferencing group said that it expects full year 2009 adjusted pre-tax profits to be in line with the board's expectations.

UK Coal plc decreased 2.5% to 75.50 pence after the coal producer said full-year output at its deep mines would be at the low end of forecasts and expansion at its Daw Mill site would be delayed by at least a month.

FTSE 100 Index Movers

Of the stocks in the FTSE 100 index, 54 increased, 48 declined and None were unchanged.

Marks and Spencer Group Plc decliners in the FTSE 100 index with a loss of 6.79% followed by losses in The British Land Company Plc of 2.57%, in Petrofac Limited of 2.52%, in Segro Plc of 2.42%, and in Schroders Plc of 2.24%.

Autonomy Corporation Plc led gainers in the FTSE 100 index with a rise of 6.12% followed by increase in Wolseley Plc of 4.69%, in The Royal Bank of Scotland Group Plc of 3.62%, in Xstrata Plc of 3.45%, and in Barclays Plc of 2.99%.