UK Indexes, Inflation Up; Barclays Net Surges

Mayank Mehta
16 Feb, 2010
New York City

The UK benchmark index closed higher after commodities prices increased. Barclays PLC 2009 earnings doubled on a sale of iShare division. Devro Plc full-year profit rises on improved collagen casing demand. Premier Foods returns to profit. InterContinental Hotels cautious as profits fall.

[R]4:00 PM London, 11:00 AM New York – The UK benchmark index closed higher after commodities prices increased. Barclays PLC 2009 earnings doubled on a sale of iShare division. Devro Plc full-year profit rises on improved collagen casing demand. Premier Foods returns to profit. InterContinental Hotels cautious as profits fall.[/R]

UK stocks closed higher after Barclays reported sharply higher earnings and commodities prices increased.

Inflation in January edged up from December and the Bank of England Governor Mervyn King said that the central bank may continue to buy government bonds if the economy falters.

In London FTSE 100 Index closed higher 76.59 or 1.48% to 5,244.06 and the pound edged higher to close at $1.567 and edged lower to close at €1.148.

UK annual inflation measured at consumer price level was 3.5% in January, increased from 2.9% in December.

Gainers & Losers

Anglo American plc added 2.7% to 2,414.00 pence and the mining giant agreed to sell Tarmac’s construction aggregates businesses in France, Germany, Poland and the Czech Republic to Eurovia, a subsidiary of the Vinci Group.

Anglo Pacific Group plc closed unchanged at 242.00 pence and the global natural resources royalties company announced an initial open pittable coal resource estimate for the Discovery Section of the Panorama Coal project located in the Groundhog Coalfield northwest British Columbia, Canada.

AstraZeneca PLC rose 0.2% to 2,805.00 pence and the pharmaceutical makers and Rigel Pharmaceuticals announced an exclusive worldwide license agreement for the global development and commercialisation of fostamatinib disodium (R788).

Barclays PLC gained 6.8% to 293.75 pence after the global financial services firm said full-year net interest income rose 4.3% to £12 billion from £11.5 billion a year ago. Net Profit for the full-year rose 114% to £9.39 billion or 81.6 pence per diluted share compared to profit of £4.38 billion or 57.5 pence per share a year ago.

Devro Plc rose 2.5% to 152.50 pence after the sausage-skin maker said full-year revenues rose 20% to £220.4 million from £183.1 million a year ago. Net Profit for the full-year rose 61.6% to £20.2 million or 12.2 pence per diluted share compared to profit of £12.5 million or 7.6 pence per share a year ago.

Domino''s Pizza UK & IRL plc slipped 0.8% to 325.00 pence after the pizza delivery chain said full-year revenues rose 14% to £155.0 million from £136 million a year ago. Net profit for the full-year rose 113% to £33.5 million or 20.95 pence per diluted share compared to profit of £15.7 million or 9.97 pence per share a year ago.

Holidaybreak plc fell 2.5% to 238.00 pence after the provision of worldwide educational and activity trips today releases group sales down 2% compared with last year. With 39% of target group revenue still to be booked, company anticipate performing in line with management expectations for the year ending September 30.

InterContinental Hotels Group PLC fell 1.7% to 904.00 pence after the hotel operator said full-year revenues fell 19% to $1.54 billion from $1.90 billion a year ago. Net Profit for the full-year fell 19% to $213 million or 72.2 cents per diluted share compared to profit of $262 million or 88.5 cents per share a year ago.

Low & Bonar plc dropped 2.6% to 37.00 pence an industrial fabric maker said full-year revenues fell 9% to £304.8 million from £335.2 million a year ago. Net loss for the full-year was £0.6 million or 0.25 pence per diluted share compared to profit of £60.5 million or 38.50 pence per share a year ago.

Mondi plc rose 1.6% to 346.40 pence after the paper group confirmed that group underlying operating profit for the second half of 2009 is expected to be above that of the first half but below that of the comparable period in 2008.

Monitise plc dropped 5.7% to 16.50 pence after the loss making mobile phone payments provider announced interim results for the first half posting pre-tax loss of £6.67 million wider than £6.39 million a year ago.

Premier Foods Plc advanced 2.5% to 33.12 pence after the food producer said full-year revenues rose 2.3% to £2.66 billion from £2.60 billion a year ago. Net Profit for the full-year was £25.2 million or 1.2 pence per diluted share compared to loss of £444.7 million or 49.1 pence per share a year ago.

FTSE 100 Index Movers

Of the stocks in the FTSE 100 index, 87 increased, 14 declined and 1 were unchanged.

InterContinental Hotels Group Plc decliners in the FTSE 100 index with a loss of 2.93% followed by losses in Imperial Tobacco Group Plc of 1.72%, in Reckitt Benckiser Group Plc of 1.00%, in Thomas Cook Group Plc of 0.95%, and in British American Tobacco Plc of 0.86%.

Barclays Plc led gainers in the FTSE 100 index with a rise of 6.80% followed by increase in The Royal Bank of Scotland Group Plc of 5.25%, in Vedanta Resources Plc of 5.20%, in Lloyds Banking Group Plc of 4.70%, and in Randgold Resources Ltd. of 4.06%.