UK Stocks Gain; AB Foods Up, Home Retail Down

123jump.com Staff
14 Jan, 2010
New York City

UK stocks closed higher on the strength in resource stocks. Mining and metals stocks gained after Rio Tinto said fourth quarter iron ore production surged 49%. Home Retail Group dropped 6% on cautious outlook. Associated British Foods and Halfords sales increased in the holiday period.

[R]6:00 PM London – UK stocks closed higher on the strength in resource stocks. Mining and metals stocks gained after Rio Tinto said fourth quarter iron ore production surged 49%. Home Retail Group dropped 6% on cautious outlook. Associated British Foods and Halfords sales increased in the holiday period.[/R]

UK stocks edged higher tracking miners and bankers. Rio Tinto said iron ore production in the fourth quarter surged 49% boosting stocks mining companies.

Output in 16-nations euro zone increased 1.0% in November from previous month and dropped 7.1% from a year ago.

In London FTSE 100 Index closed higher 24.72 or 0.45% to 5,498.20, in Paris CAC 40 Index increased 14.91 or 0.37% to close at 4,015.77, in Frankfurt DAX index higher 25.74 or 0.43% to close at 5,988.88. In Zurich trading SMI increased 72.87 or 1.11% to close at 6,627.42.

UK Movers

HMV Group Plc decreased 8% to 84.4 pence after it said holiday sales were weaker than expected and blamed the weakness on the bookstore chain division Waterstone.

Home Retail Group Plc dropped 6.2% to 265.8 pence after chief executive Terry Duddu comments in a conference call with investors that industry will struggle show retail sales growth.

Halfords Group Plc declined 3.9% to 405 pence after same store sales increased 0.2% in the thirteen week period ending on Jan 1.

Associated British Foods Plc increased 1.1% to 869 pence after it said holiday period of sixteen weeks to Jan 2 sales increased 17% from a year ago period.

Miners rallied after Rio Tinto said iron ore production in the fourth quarter to December surged 49% driven by demand from China.

Rio Tinto increased 2.2% to 3,617.50 and Xstrata Plc increased 4% to 1,220 pence and BHP Billiton increased 1.2% to 2,066 pence.

Hays Plc increased 4.4% to 110.70 pence after Morgan Stanley recommended shares and lifted its rating to “overweight” from “equal weight.”

FTSE 100 Index Movers

Of the stocks in the FTSE 100 index, 65 increased, 35 declined and 2 were unchanged.

Home Retail Group Plc decliners in the FTSE 100 index with a loss of 6.24% followed by losses in Marks and Spencer Group Plc of 3.28%, in Bunzl Plc of 2.71%, in The British Land Company Plc of 2.19%, and in Segro Plc of 1.97%.

Xstrata Plc led gainers in the FTSE 100 index with a rise of 4.01% followed by increase in Antofagasta Plc of 3.10%, in Wolseley Plc of 2.89%, in Carnival Plc of 2.75%, and in Lloyds Banking Group Plc of 2.68%.