UK Stocks Up; Manchester United

Mayank Mehta
11 Jan, 2010
New York City

UK stocks traded sideways but resource sector stocks gained. UK financial services executives indicate weak sentiment for the industry. Manchester United files to raise

[R]4:00 PM London, 11:00 AM New York – UK stocks traded sideways but resource sector stocks gained. UK financial services executives indicate weak sentiment for the industry. Manchester United files to raise £500 million. BAA Ltd said December traffic decreased 0.9%.[/R]

UK stocks advanced on a rally in energy and mining shares after China reported 18% increase in its exports in December and became the largest automaker in the world with 13.4 million unit sales.

The latest survey of UK financial services executives indicated that the largest groups of firms are pessimist since the beginning of 2009. Nearly 13% more firms anticipated decline in business more than anticipating an increase.

In London FTSE 100 Index closed higher 14.65 or 0.26% to 5,548.89 and the pound edged higher to close at $1.612 and edged lower to close at €1.111.

SAB Miller Plc declined 2% to 1,801 after it restrained to increase its bid for Mexico based Femsa SAB beyond $7 billion. Heineken won the bid with $7.7 billion offer.

Manchester United filed with the UK regulatory agency to raise £500 million through a bond offering that matures in 2017. Sales in 2008 increased 8.7% to £278.5 million and net income increased to £25.6 million after it sold contract with Cristiano Ronaldo to Real Madrid for £80 million.

BAA Ltd said traffic in December at all UK operated airports decreased 0.9% to 8 million passengers.

Gainers & Losers

Climate Exchange plc the emissions exchange operator fell 1.5% to 717.00 pence.

Cobham plc closed unchanged 248.90 pence after the aerospace group was awarded the U.S. military contract that could be worth as much as $11.5 million.

EMED Mining Public Limited rose 7.4% to 14.23 pence after the company plans to restart a mine in Spain after a court ruling in favor of it.

Fresnillo Plc rose 1.5% to 879.50 pence after the silver miner announced that Minera Penmont S. de R. L. de C.V. its 56% owned joint venture with Newmont Mining Corporation (44%), has decided to take no further action regarding its proposal to acquire the outstanding common shares of Canplats Resources Corporation.

Jacques Vert Plc surged 28.4% to 10.91 pence after the women’s clothing retailer said first-half revenues rose 1.6% to £55.8 million from £54.9 million a year ago. Net profit for the first-half rose 1.5% to £2.85 million or 1.44 pence per diluted share compared to net profit of £1.09 million or 0.56 pence per share a year ago.

Nwf Group plc slipped 2.1% to 92.00 pence and the oil, animal feeds, and grocery products distributor reiterated that the business is performing meeting management expectations at its annual general meeting.

PartyGaming plc added 1.6% to 284.00 pence after the online gambling group today announced an exclusive, five-year agreement to provide an online platform for poker and casino games in Denmark for Danske Spil A/S.

PV Crystalox Solar PLC rose 0.7% to 69.00 pence after the solar panel silicon wafer maker said today that its trading since its interim statement on November 19 is in line with management expectations.

Ultra Electronics Holdings plc added 0.4% to 1,390.00 pence after the defense equipment maker for armored vehicles received initial contract is valued at £1.5 million with the value rising to £14 million if all production options are executed.

The Weir Group PLC dropped 2.8% to 808.00 pence after the engineering group announces the appointment of Jon Stanton as Group Finance Director.

Wolseley plc decreased 0.2% to 1,435.00 pence after the cash strapped plumbers merchant announced that it has agreed to dispose of 100% of its shareholding in Wolseley Ireland Holdings Limited to WIBHM Limited, a private investor backed company for €26.5 million or £23.8 million.

FTSE 100 Index Movers

Of the stocks in the FTSE 100 index, 53 increased, 47 declined and 2 were unchanged.

Eurasian Natural Resources Corporation Plc decliners in the FTSE 100 index with a loss of 2.32% followed by losses in Standard Chartered Plc of 2.09%, in Legal & General Group Plc of 2.08%, in SabMiller Plc of 2.01%, and in Prudential Plc of 1.88%.

Land Securities Group Plc led gainers in the FTSE 100 index with a rise of 2.86% followed by increase in Tui Travel Plc of 2.69%, in The British Land Company Plc of 2.60%, in BG Group Plc of 2.43%, and in Marks and Spencer Group Plc of 2.35%.