UK Markets Lower; BSkyB Up, AstraZeneca Down

Mayank Mehta
28 Jan, 2010
New York City

UK stocks closed lower as the weakness in resource stocks and banks overshadowed better than expected earnings from BSkyB. AstraZeneca reported weaker than expected earnings and lower than expected outlook for the year. Christie

[R]4:00 PM London, 11:00 AM New York – UK stocks closed lower as the weakness in resource stocks and banks overshadowed better than expected earnings from BSkyB. AstraZeneca reported weaker than expected earnings and lower than expected outlook for the year. Christie’s total 2009 sales declined 24%.[/R]

UK stocks edged lower after markets in Europe turned lower at close. Investors sold stocks after U.S. jobless claims decreased and confidence in Germany increased.

In London FTSE 100 Index closed lower 71.73 or 1.37% to 5,145.74 and the pound edged lower to close at $1.614 and edged lower to close at €1.147.

AstraZeneca declined after it profit estimates and issued weaker than expected outlook. Nokia and the second largest retailer H&M surged on better than expected earnings. BSkyB first half net increased as more subscribers sign up for high-definition TV.

Christie’s International said total sales in 2009 declined 24% to £2.1 billion or equivalent of $3.3 billion but anticipated better sales in 2010. The contemporary art sales fell 59% to £244.3 million. Chinese event sales surged 94%.

Gainers & Losers

3i Group plc rose 0.8% to 265.70 pence after the private equity group announced today that sale of stakes and other returns has enabled it to repay more than expected debt and meet its target of lowering debt by half, according to a Reuters report.

AG Barr PLC rose 0.6% to 820.00 pence after the soft drinks maker said today it expects to post fiscal 2010 results ahead of market expectations, as strong sales of its carbonate brands including Irn Bru in its final quarter led to a stronger finish to the year than expected.

Aquarius Platinum Limited the platinum producer rose 1.5% to 389.40 pence.

AstraZeneca PLC fell 3.2% to 2,947.00 pence after the pharmaceutical company said fourth quarter revenues rose 9.3% to $8.95 billion from $8.19 billion a year ago. Net profit for the quarter rose 24% to $1.55 billion or $1.07 per diluted share compared to net profit of $1.25 billion or $0.86 per share a year ago.

Brewin Dolphin Holdings PLC added 4.2% to 141.90 pence after the stockbroker and fund manager said first quarter revenues rose 20% to £50.3 million from £41.9 million a year ago. Total income for the quarter rose 11.5% to £56.9 million compared to total income of £51.0 million a year ago.

British Sky Broadcasting Group plc advanced 1.8% to 564.00 pence after the satellite television service said first-half revenues rose 10% to £2.87 billion from £2.60 billion a year ago. Net profit for the first-half rose 54% to £256 million or 14.6 pence per diluted share compared to net profit of £166 million or 9.5 pence per share a year ago.

Eaga plc rose 2.6% to 145.20 pence after the heating and renewable energy Services Company said first-half revenues rose 15.3% to £391.5 million from £339.4 million a year ago. Net profit for the first-half fell 9.8% to £11.1 million or 4.39 pence per diluted share compared to net profit of £12.3 million or 4.89 pence per share a year ago.

Findel plc fell 0.7% to 32.75 pence after the home shopping group announced in the 39-weeks to January 1 sales from continuing businesses, including the Webb Group, increased 3% compared to the same period last year. Like-for-like sales for the period were 3% below the same period last year.

JJB Sports plc dropped 3.4% to 20.75 pence after the sports retailer said like-for-like revenue fell 28% for the 52-week period to January 24 compared to last year. Total group revenue fell 51% compared to last year, but like-for-like sales continued to improve from a decline of 37% in August to a fall of 21% in January.

Lonmin Plc rose 1.4% to 1,863.00 pence and the South African based platinum miner said tons mined from Marikana underground operations fell slightly, partly as a result of the planned closure of uneconomic production units in 2009.

Rolls-Royce Group plc rose 1.9% to 482.90 pence and it won a share of an order from Jetstar Airways for V2500 engines to power 90 Airbus A320 family aircraft. The order is worth up to $1.2 billion to Rolls-Royce if all options are exercised.

Robert Wiseman Dairies PLC rose 2.1% to 487.10 pence after the distributor of milk and associated products decided to make an additional one-time bonus payment of £100 to 3,500 hourly paid staff. The extra payment will cost Wiseman £400,000, including the employers’ national insurance contribution.

Tate & Lyle PLC fell 3.6% to 392.10 pence after the sugar and sweetener manufacturer said that its performance in the last three months of 2009 had been ""marginally below company expectations"" on a decline in sales in the Americas division.

Tribal Group PLC increased 5.7% to 82.50 pence after the public-sector consultant said at the end of 2009 the company had approximately 42% of 2010 planned revenue already committed, with total committed income at £217 million compared to £139 million in 2008.
FTSE 100 Index Movers

Of the stocks in the FTSE 100 index, 19 increased, 82 declined and 1 were unchanged.

AstraZeneca Plc decliners in the FTSE 100 index with a loss of 4.60% followed by losses in Xstrata Plc of 4.33%, in Antofagasta Plc of 3.85%, in Man Group Plc of 3.46%, and in Anglo American Plc of 3.32%.

Carnival Plc led gainers in the FTSE 100 index with a rise of 1.61% followed by increase in Next Plc of 1.30%, in RSA Insurance Group Plc of 0.94%, in Schroders Plc of 0.90%, and in Fresnillo Plc of 0.74%.