Weak Metals Drag UK Stocks, William Hill Up 6%

Mayank Mehta
20 Jan, 2010
New York City

Weak commodities prices sent stocks in London lower, metals fell after Chinese banking regulator comments suggested a possible lending tightening. Electronics retailer Kesa Electricals declined after it reported weak sales in holiday period. William Hill, the bookmaker soared on sales rise of 6%.

[R]4:00 PM London, 11:00 AM New York – Weak commodities prices sent stocks in London lower. Metals fell after Chinese banking regulator comments suggested a possible lending tightening. Electronics retailer Kesa Electricals declined after it reported weaker than expected holiday sales. William Hill, the second largest bookmaker surged on revenue rise of 6%.[/R]

UK stocks focused on the weak commodities prices and closed lower. Miners led the decliners in trading. UK unemployment in for three months to November was unchanged.

UK employment rate for three months to November was 72.4% from the previous quarter. The number of unemployed people increased 14,000 in the quarter to 28.92 million, the highest since winter 1996 ad 1997 period. Unemployment in three months to November was unchanged at 7.8%.

In London FTSE 100 Index closed lower 77.90 or 1.41% to 5,435.24 and the pound edged lower to close at $1.629 and edged higher to close at €1.153.

Copper, gold and silver fell sharply in London and in New York after Chief banking regulator said that certain banks are required to limit their new lending until they meet their regulatory requirements. New loans in China in the first two weeks in January doubled from the monthly loan rate in the second half of 2009.

Gainers & Losers

BHP Billiton plc dropped 2.7% to 2,023 pence and Reuters reported that some Japanese smelters have agreed to 38% cut in copper treatment and refining charges for 2010 with global miner.

Business Post Group plc gained 5% to 310.00 pence after the parcels and mail services provider said that it expects better than expected profit in the fiscal year ending in March.

Coastal Energy Company fell 7.6% to 349.45 pence after the Thailand focused oil explorer announces the results of the Songkhla B-01 exploration well on Block G5/43 in the Gulf of Thailand.

Great Portland Estates plc rose 1% to 299.50 pence after the property specialist today said the value of its property rose by 9% in the three months to December.

Hochschild Mining plc decreased 4.1% to 319.60 pence after the Latin America-focused miner remains confident about the prospects for gold and silver prices in 2010. Gold jumped 25% and silver surged 57% in 2009.

J D Wetherspoon plc decreased 0.8% to 459.90 pence after the pub chain said for the first ten weeks of the second quarter like-for-like sales increased 1.2%, compared to 0.3% growth in the first quarter. Total sales for quarter rose 5.3%, compared to 4.5% in the first quarter.

Kesa Electricals plc declined 3.5% to 140.60 pence an electrical retailer said for the period November 1, 2009 to January 8, 2010 revenues rose 1.3% in pound, up 0.7% in local currency and fell 0.3% on a like-for-like basis. Gross margin was flat.

Optos Plc the retinal imaging company increased 8.2% to 105.00 pence.

Oxford BioMedica plc rose 2.1% to 11.75 pence after the gene therapy company announced today that UshStat, the Company’s gene therapy for the treatment of Usher syndrome 1B, has received orphan designation from the Committee for Orphan Medicinal Products of the European Medicines Agency.

SOCO International plc dropped 3% to 1,423 pence after the oil explorer in 2009 realized an average oil price of approximately $55.50 a barrel of oil compared to $55.27 a barrel in 2008.

William Hill PLC added 6.7% to 198.20 pence after the betting and gaming company said fourth quarter group net revenue rose 6% from a year ago and for the year an increase of 4% from a year ago and earnings before interest and taxes of £250 million.

Wynnstay Group PLC dropped 3.2% to 235.00 pence an agricultural products maker said full-year revenues fell 8.4% to £215 million from £234.6 million a year ago. Net profit for the full-year fell 2% to £3.82 million or 26.14 pence per diluted share compared to £3.90 million or 29.09 pence per share a year ago.

FTSE 100 Index Movers

Of the stocks in the FTSE 100 index, 16 increased, 85 declined and 1 were unchanged.

Eurasian Natural Resources Corporation Plc decliners in the FTSE 100 index with a loss of 6.28% followed by losses in Xstrata Plc of 6.20%, in Lonmin Plc of 6.19%, in Antofagasta Plc of 5.97%, and in Kazakhmys Plc of 5.48%.

Shire Plc led gainers in the FTSE 100 index with a rise of 2.60% followed by increase in Cable & Wireless Plc of 1.44%, in Scottish and Southern Energy Plc of 1.18%, in United Utilities Group Plc of 0.99%, and in WPP Plc of 0.92%.