UK Trade Deficit Grows; FSA Chief Resigns

Mayank Mehta
09 Feb, 2010
New York City

UK stocks gyrate with European markets and commodities prices. Metals gained in London trading. The British Land Company swings to profit in third quarter. TUI Travel Plc quarterly net loss widens and sales down. British Sky Broadcasting Group plc sells 10.4% stake in ITV plc.

[R]4:00 PM London, 11:00 AM New York – UK stocks gyrate with European markets and commodities prices. Metals gained in London trading. The British Land Company swings to profit in third quarter. TUI Travel Plc quarterly net loss widens and sales down. British Sky Broadcasting Group plc sells 10.4% stake in ITV plc. Higher fees lift Southern Cross.[/R]

In London FTSE 100 Index closed higher 19.51 or 0.38% to 5,111.84 and the pound edged higher to close at $1.562 and edged lower to close at €1.136.

The UK trade deficit in goods and services increased to £3.3 billion in December, compared to deficit of £2.9 billion in November. The deficit on trade in goods increased to £7.3 billion in December compared to deficit of £6.8 billion in November.

The chief executive of the top banking and securities regulator Financial Services Authority resigned effective June. Hector Sants said he will step down from the position as he promised at the beginning of the tenure three years ago in July 2007.

Sants, a former executive at Credit Suisse Group AG was appointed at the FSA, the agency was created by Prime Minister Gordon Brown in 1997 after the scandals at Barings Plc and Bank of credit and Commerce International.

The opposition Conservative Party lawmakers have said that they will abolish the agency if they win the elections that have to be completed by June.

Gainers & Losers

888 Holdings Public Limited Company rose 1.8% to 104.70 pence after the online gaming group today reported fourth quarter increased 14% to total operating income $68 million compared to $60 million a year ago. The company is also looking to acquire other online assets as it sees consolidation opportunity in the European market.

Alphameric plc added 1.8% to 27.00 pence after the supplier of retail, leisure and financial software solutions said full-year revenues rose 11.4% to £40 million from £35.9 million a year ago. Net profit for the full-year was £6.78 million or 3.0 pence per diluted share compared to net loss of £27.09 million or 12.4 pence per share a year ago.

Beazley Group Plc rose 0.8% to 103.20 pence after the specialist insurer and reinsurer said full-year revenues rose 35.6% to £905.3 million from £667.4 million a year ago. Net profit for the full-year rose 37% to £88.4 million or 17.8 pence per diluted share compared to net profit of £64.4 million or 18.0 pence per share a year ago.

The British Land Company PLC added 2.7% to 450.30 pence after the property investment and development and finance Company said third quarter net rental income fell 40% to £71 million from £118 million a year ago. Net profit for the quarter was £623 million or 72 pence per diluted share compared to net loss of £1.59 billion or 257 pence per share a year ago.

Homeserve plc fell 0.1% to 1,653 pence after the home insurance and repair solutions services provider said Brian Whitty, Executive Chairman, is to step down from the board on March 31 after 14 years of service.

ITV plc dropped 1.8% to 50.35 pence after the company said British Sky Broadcasting Group plc sold a 10.4% stake in ITV Plc for around £196 million ($305.4 million).

Patsystems plc increased 8.0% to 24.30 pence after the software company said full-year revenues rose 13% to £22.1 million from £19.6 million a year ago. Net profit for the full-year rose 442% to £3.36 million or 1.8 pence per diluted share compared to net profit of £0.62 million or 0.3 pence per share a year ago.

Pennon Group Plc fell 0.5% to 510.50 pence after the water company said business since October 1 2009 has been in line with management expectations.

SABMiller plc fell 0.5% to 1,689.00 pence after the brewing and beverage maker said fourth quarter sales fell 1.6% to $1.71 billion from $1.74 billion a year ago. Net profit for the quarter rose 89% to $102.2 million compared to net profit of $54.1 million a year ago.

Southern Cross Healthcare Group PLC rose 0.8% to 151.25 pence after the home care giver increased fees for private residences by 3.7% effective from February. Home level EBITDAR margin increased to 29.4%.

TUI Travel PLC advanced 0.1% to 258.20 pence an international leisure travel group said first quarter revenues fell 8% to £2.53 billion from £2.75 billion a year ago. Net loss for the quarter was £124 million compared to net loss of £67 million a year ago.

Wolfson Microelectronics plc increased 8.3% to 129.50 pence after the semiconductor company said fourth quarter revenues fell 26.5% to $27.5 million from $37.4 million a year ago. Net loss for the quarter was $3.8 million or 3.30 cents per diluted share compared to net loss of $2.83 million or 2.44 cents per share a year ago.

FTSE 100 Index Movers

Of the stocks in the FTSE 100 index, 50 increased, 49 declined and 3 were unchanged.

Aviva Plc decliners in the FTSE 100 index with a loss of 3.15% followed by losses in Resolution Limited Plc of 2.60%, in Scottish and Southern Energy Plc of 1.89%, in SABMiller Plc of 1.77%, and in Serco Group Plc of 1.65%.

Xstrata Plc led gainers in the FTSE 100 index with a rise of 4.54% followed by increase in Antofagasta Plc of 4.09%, in Rio Tinto Plc of 3.74%, in Fresnillo Plc of 3.40%, and in British Airways Plc of 3.17%.