UK Stocks Rise; Northumbrian Water Soars

Mayank Mehta
01 Feb, 2010
New York City

The UK benchmark indexes closed higher. Home prices increased in January, sixth monthly increase in a row. Northumbrian Water Group Plc soared on the speculation that Canada based pension fund is likely to bid for the company. Ryanair Holdings Plc gained 7% after it lifted full year outlook.

[R]4:00 PM London, 11:00 AM New York – The UK benchmark indexes closed higher. Home prices increased in January, sixth monthly increase in a row. Northumbrian Water Group Plc soared on the speculation that Canada based pension fund is likely to bid for the company. Ryanair Holdings Plc gained 7% after it lifted full year outlook.[/R]

UK home prices increased in January by 0.1% to £157,000 according to the latest data released by Hometrack Ltd. The sixth monthly increase in a row matched the previous month gain but prices declined from a year 0.8%.

In London FTSE 100 Index closed higher 58.89 or 1.14% to 5,247.41 and the pound edged lower to close at $1.593 and to €1.144.

Gainers & Losers

Cranswick plc climbed 3.0% to 758.50 pence after the sausages, bacon and pork specialist said third quarter total sales increased 31% to £200 million compared to the same period last year.

The Evolution Group Plc rose 0.08% to 127.10 pence after the investment management firm today said that full year revenues more than doubled from the previous year. Full year earnings are expected to be in line with market expectations.

Formation Group PLC closed unchanged at 4.00 pence after the property company said full-year revenues fell 24.4% to £18.9 million from £25 million a year ago. Net loss for the full-year was £26.8 million or 9.56 pence per diluted share compared to net profit of £2.75 million or 0.20 pence per share a year ago.

Galliford Try plc dropped 3.6% to 305.00 pence after the home builder and construction group finalized £60 million project to develop the new Worcester Library and History Centre for Worcestershire County Council in partnership with the University of Worcester.

Mouchel Group plc decreased 1.3% to 245.25 pence and the consulting and business services group secured a temporary waiver on one of its bank covenants.

Northumbrian Water soared 12% to 289 pence after Sunday Times reported that the Ontario Teacher’s Pension Plan may bid for the water utility. The media speculation lifted stocks of other water utilities. Severn Trent Plc increased 4% to 1,170 pence and United Utilities added 2.8% to 551.50 pence.

Phoenix IT Group plc fell 1% to 275.00 pence and the IT outsourcing company sounded optimistic note on the business and reiterated that its outlook is in line with market expectations.

Premier Foods Plc increased 2.3% to 33.00 pence and the company announces that David Kappler intends to step down as Chairman later in the year and the Board has commenced a succession process.

Petrofac Limited fell 0.05% to 964.50 pence and the oil and gas facilities service provider has been the subject of press speculation concerning the possible demerger of its interests in the Don area of the North Sea.

Renold plc increased 5.7% to 23.00 pence after the industrial chain maker said its trading from October 2009 to the current date has been in line with the board''s expectations.

SThree Plc rose 1.0% to 308.00 pence after the recruitment firm said full-year revenues fell 18% to £519.4 million from £631.5 million a year ago. Net profit for the full-year fell 84% to £6 million or 3.9 pence per diluted share compared to net profit of £37.8 million or 28.1 pence per share a year ago.

Vedanta Resources jumped 5.2% to 2,553 pence after the Sunday edition of the Independent said that the company is looking to sell some of its divisions or spinoff to shareholders.

Xstrata plc rose 0.8% to 1,040.00 pence after the mining company alloys progressively increased production from 20% of annual capacity at the start of 2009 to approximately 85% by year end.

FTSE 100 Index Movers

Of the stocks in the FTSE 100 index, 80 increased, 19 declined and 3 were unchanged.

Schroders Plc decliners in the FTSE 100 index with a loss of 2.81% followed by losses in Schroders Plc of 1.50%, in Imperial Tobacco Group Plc of 1.18%, in Experian Plc of 1.17%, and in Amec Plc of 0.86%.

The Royal Bank of Scotland Group Plc led gainers in the FTSE 100 index with a rise of 7.93% followed by increase in Vedanta Resources Plc of 5.19%, in Kazakhmys Plc of 5.09%, in Barclays Plc of 4.31%, and in Fresnillo Plc of 4.24%.