Xstrata, Randgold Earnings Lift UK Stocks

Mayank Mehta
08 Feb, 2010
New York City

In London trading mining stocks led the gainers and insurance companies led the decliners. Xstrata reinstated its dividend and Randgold lifted dividend by 30%. Anglo American said it will take its full share of rights offering from Anglo Platinum Ltd.

[R]4:00 PM London, 11:00 AM New York – In London trading mining stocks led the gainers and insurance companies led the decliners. Xstrata reinstated its dividend and Randgold lifted dividend by 30%. Anglo American said it will take its full share of rights offering from Anglo Platinum Ltd.[/R]

Mining shares were in focus in London trading after Xstrata Plc reinstated its dividend and Randgold Resources Ltd fourth quarter earnings and sales soared and increased its dividend 30%.

In London FTSE 100 Index closed higher 31.41 or 0.62% to 5,092.33 and the pound edged lower to close at $1.559 and edged lower to close at €1.141.

Insurance companies declined on the worries that corporate and state obligations and bonds may weaken as institutions struggle with budgetary constraints.

Gainers & Losers

Amino Technologies plc climbed 2.1% to 32.70 pence an online video services provider said full-year revenues fell 21% to £25.3 million from £31.9 million a year ago. Net loss for the full-year was £8.7 million or 15.97 pence per diluted share compared to net profit of £2.2 million or 3.77 pence per share a year ago.

Anglo American plc increased 2.8% to 2,338.50 pence after the mining company accepted the in total its share of rights offer from its subsidiary Anglo Platinum. South Africa based Anglo Platinum Ltd plans to raise as much as £1 billion through the sale of 24.9 million shares each at 502.19 rand.

BATM Advanced Communications Ltd plunged 10.2% to 48.25 pence after the supplier of broadband data and telecommunications systems and medical laboratory equipment reported a decline in profit on nearly flat sales and lower margins.

Kofax PLC decreased 0.9% to 199.75 pence after the provider of document driven business process automation solutions said first-half revenues rose 9% to $168.3 million from $154.5 million a year ago. Net profit for the first-half fell 84% to $1.1 million or 1.3 cents per diluted share compared to net profit of $6.8 million or 8.1 cents per share a year ago.

International Power increased 2.1% to 320.6 pence after a report published in Independent said that France based GDF Suez may increase its offer for the company.

Latchways plc increased 3.4% to 685 pence after the safety harness specialist estimated higher sales from global distribution.

Randgold Resources Ltd increased 5.7% to 4,452.00 pence after the gold miner said fourth quarter sales rose 78% to $139.2 million from $78.1 million a year ago. Net profit for the quarter rose 253% to $32.1 million or 36 cents per diluted share compared to net profit of $9.1 million or 12 cents per share a year ago.

RM plc gained 4.2% to 180.00 pence after the IT equipment supplier to academic institutions reiterated annual earnings outlook.

St. Modwen Properties plc gained 3.6% to 193.30 pence after the property developer said full-year revenues fell 22.4% to £113.7 million from £146.5 million a year ago. Net loss for the full-year was £101.5 million or 59.7 pence per diluted share compared to net loss of £51.7 million or 37.3 pence per share a year ago.

Vodafone Group Plc rose 0.04% to 139.15 pence.

Xstrata plc added 3.7% to 985.80 pence after the mining company said full-year revenues fell 19% to $22.7 billion from $28 billion a year ago. Net profit for the full-year fell 81.6% to $661 million or $0.25 per diluted share compared to net profit of $3.6 billion or $2.12 per share a year ago.

The company reinstated its dividend and also guided commodities demand outlook is “promising.”

FTSE 100 Index Movers

Of the stocks in the FTSE 100 index, 62 increased, 37 declined and 3 were unchanged.

Legal & General Group Plc decliners in the FTSE 100 index with a loss of 3.53% followed by losses in British Airways Plc of 3.40%, in Aviva Plc of 2.57%, in Prudential Plc of 2.44%, and in Lloyds Banking Group Plc of 2.31%.

Randgold Resources Ltd.led gainers in the FTSE 100 index with a rise of 6.44% followed by increase in Fresnillo Plc of 5.30%, in Xstrata Plc of 3.56%, in ICAP Plc of 3.30%, and in Sabmiller Plc of 2.97%.