Miners, Banks Drag FTSE in London

123jump.com Staff
12 Feb, 2010
New York City

The benchmark index in UK declined after a weakness in commodities and resource stocks. FTSE 100 index closed up for the first time after four weeks. New Look Group decided to postpone its initial public offering to raise as much as $1 billion.

[R]4:00 PM London, 11:00 AM New York – The benchmark index in UK declined after a weakness in commodities and resource stocks. FTSE 100 index closed up for the first time after four weeks. New Look Group decided to postpone its initial public offering to raise as much as $1 billion. [/R]

UK stocks closed lower on the weakness in the miners and banks. Commodities and resource stocks declined after China increased reserve ratios for banks to tighten monetary policy and stem the rising real estate prices.

In London FTSE 100 Index closed lower 19.03 or 0.37% to 5,142.45 and the pound edged lower to close at $1.564 and edged higher to close at €1.148.

Xstrata Plc declined 2.5% to 1,005 pence, Anglo American Plc edged lower 1.6% to 2,130 pence and Vedanta Resources Plc dropped 2.5% to 2,363 pence.

New Look Group Plc pulled its initial public offering that was scheduled to raise $1 billion. The company in a statement cited “unfavorable” market conditions. The company was taken private in 2004 by a group of private equity funds including Apax Partners, Permira and founder Tom Singh, according to regulatory filings.

Gainers & Losers

Diageo Plc increased 1.2% to 1,030 pence after the maker of liquor and spirit said sales in Latin America and Africa may double in the next five years on higher investments.

Energybuild Group Plc plunged 11.1% to 15.55 pence after the welsh coal miner reported a loss for the six months ended December 2009 compared to a profit in the comparable period last year. Revenues more than halved reflecting the lack of opencast coal production and lower coal prices.

Helical Bar plc dropped 1.6% to 309.90 pence after the property company now seeing signs that the London office market is recovering and sounded optimistic for the mixed use schemes at Fulham Wharf, King Street Hammersmith and White City.

International Greetings plc surged 14.9% to 61.52 pence after the crackers and stationery group said in its trading update for the ten months ended January 31, said it expects the year-end net income before tax to be in line with market expectations.

Micro Focus International plc decreased 0.7% to 468.90 pence after the enterprise application software company said that the outlook for the year is in line with management expectations. Within the application testing business, the beneficial second half year net impact of the capitalization of R&D is now expected to be $4.5 million.

Petropavlovsk plc declined 0.06% to 875.00 pence after the gold miner said that Dr. Graham Birch has been appointed as Non-Executive director.

Robinson plc closed unchanged at 40.00 pence after the packaging company said revenues declined 8% to £23.8 million for the year and in line with management''s expectations.

Shaftesbury Plc the real estate investment trust fell 0.6% to 377.00 pence.

SSL International plc rose 0.3% to 770.00 pence after the Durex condoms and Scholl footcare products maker announces that it has exercised an option to increase its stake in the holding company Beleggingsmaatschappij Lemore BV to 75%.

United Business Media Limited rose 1.0% to 417.30 pence after the business publisher today announces that UBM Think Services CEO Philip Chapnick has been appointed to the newly-created position of Group Chief Representative for UBM in China, reporting directly to UBM''s Chief Executive Officer, David Levin.

FTSE 100 Index Movers

Of the stocks in the FTSE 100 index, 39 increased, 60 declined and 3 were unchanged.

British Airways Plc decliners in the FTSE 100 index with a loss of 4.12% followed by losses in Lloyds Banking Group Plc of 3.24%, in Rolls-Royce Group Plc of 2.69%, in Legal & General Group Plc of 2.65%, and in Vedanta Resources Plc of 2.52%.

National Grid Plc led gainers in the FTSE 100 index with a rise of 2.56% followed by increase in BT Group Plc of 2.17%, in United Utilities Group Plc of 1.70%, in TUI Travel Plc of 1.69%, and in International Power Plc of 1.42%.