UK Financials Up; Autonomy Drops, ICAP Soars

Mayank Mehta
10 Feb, 2010
New York City

UK financials closed higher ahead of the EU summit tomorrow. BHP Billiton sales declined 17% in the first half. ICAP soared 11% after it was recommended by two brokers. Reckitt Benckiser Group increased 1.7% after it reported higher than expected earnings. Autonomy Corp dropped 5%.

[R]4:00 PM London, 11:00 AM New York – UK financials closed higher ahead of the EU summit tomorrow. BHP Billiton sales declined 17% in the first half. ICAP soared 11% after it was recommended by two brokers. Reckitt Benckiser Group increased 1.7% after it reported higher than expected earnings. Autonomy Corp dropped 5%.[/R]

The UK benchmark index increased at close after investors focused on the EU summit scheduled tomorrow and a prospect of a bilateral bailout for Greece. Greek unions conducted their one-day strike today and promised more if the government carries out its promise of wage freeze and cost controls.

In London FTSE 100 Index closed higher 20.15 or 0.39% to 5,131.99 and the pound edged lower to close at $1.561 and to close at €1.136.

Overall UK production output in December fell by 3.6% from a year ago. Output in mining & quarrying declined by 12.1%, energy supply industry fell 6.6%. Manufacturing output increased 0.5% in December from a year ago month.

Insurance and financial stocks closed higher on the expectations that the EU will offer a comprehensive plan for smaller nations including Greece, Spain and Portugal.

Gainers & Losers

Autonomy Corporation plc the software and database developer dropped 5.3% to 1,524 pence after it completed the sale of 500 million of convertible 5-year bonds with a call provision after three years.

BHP Billiton plc added 0.3% to 1,891.50 pence after the diversified natural resources company said first-half revenues fell 17.5% to $24.6 billion from $29.8 billion a year ago. Net profit for the first-half rose 134.6% to $6.1 billion or 109.8 cents per diluted share compared to net profit of $2.6 billion or 47.0 cents per share a year ago.

Care UK plc rose 0.3% to 410.00 pence after the health and social care solutions provider said private-equity investor Bridgepoint Capital Ltd was in advanced stages of due diligence for a potential buyout of the company.

Dana Petroleum plc increased 2.4% to 1,020.00 pence after the company announced that it has made a second gas discovery in the West El Burullus concession, offshore Nile Delta, Egypt.

Grainger plc added 2.5% to 128.20 pence after the residential property group said the total value of completed sales in January increased 42% to £83.9 million from £58.9 million and 5.3% ahead of September 2009.

Hargreaves Lansdown plc rose 0.07% to 292.00 pence after the fund manager posted first-half revenue increase of 14% to £74.6 million.

Morse plc added 2.4% to 42.75 pence after the IT services firm said first-half pre-tax profit of £4.1 million compared loss of £3.21 million in the prior year period. Profit for the period was £3.0 million compared with a loss of £17.55 million a year ago.

Reckitt Benckiser Group Plc added 2.8% to 3,222.00 pence after the maker said fourth quarter total net revenue rose 10% and earnings of £448 million.

Synergy Health plc rose 1.6% to 640 pence after the healthcare support services group reiterated its annual outlook. Revenues in the third quarter increased 8.0% on the same period last year to £73.3 million from £67.9.million.

TeleCity Group Plc rose 0.4% to 376.40 pence after the data centre operator reported a sharp rise in profit for the year ended December 31 helped by solid demand across all markets. The company reiterated its 2010 revenue growth is in line with market expectations.

FTSE 100 Index Movers

Of the stocks in the FTSE 100 index, 77 increased, 24 declined and 1 were unchanged.

Autonomy Corporation Plc decliners in the FTSE 100 index with a loss of 5.47% followed by losses in Antofagasta Plc of 2.14%, in GlaxoSmithKline Plc of 1.85%, in Royal Dutch Shell Plc of 1.63%, and in BHP Billiton Plc of 1.54%.

ICAP Plc led gainers in the FTSE 100 index with a rise of 10.56% followed by increase in Aviva Plc of 4.96%, in Old Mutual Plc of 4.11%, in Aggreko Plc of 3.91%, and in Prudential Plc of 3.84%.