UK Stocks Rise; BAE, Kingfisher Up

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

BAE Systems sales increased 21% and lifts its dividend. Reed Elsevier fiscal year net profit declined 18%. Ladbrokes reported lower earnings. Barrick Gold is planning to list its Tanzanian gold mines in London, making it the largest gold company on the exchange.

[R]4:00 PM London, 11:00 AM New York - BAE Systems sales increased 21% and lifts its dividend. Reed Elsevier fiscal year net profit declined 18%. Ladbrokes reported lower earnings. Barrick Gold is planning to list its Tanzanian gold mines in London, making it the largest gold company on the exchange.[/R]

UK stocks closed higher after investors focused on earnings.

Kingfisher increased after it said full year profit was “slightly ahead” of market estimate and BAE Systems gained 3% after sales increased 21% and it initiated stock buyback program of 500 million pounds.

In London FTSE 100 Index closed higher 44.18 or 0.84% to 5,320.82 and the pound edged lower to close at $1.564 and edged lower to close at €1.148.

Gainers & Losers

Anglo American plc dropped 0.04% to 2,442.50 pence after the mining giant said adjusted earnings from Kumba Iron Ore Limited are estimated $490 million for the year ended December 2009.

Antisoma plc fell 0.6% to 36.25 pence after the cancer group said lung cancer phase III data are expected in mid-2011 and Novartis plans filings in 2011.

Barrick Gold Corp in a statement said it plans to spin off its gold mining operations in Tanzania and list them in London.
Tanzania based mines produce 716,000 ounces of gold in 2009 and the listing will make it the largest gold operation listed in London followed by Petropavlovsk Plc based in Russia and Randgold Resources Ltd based in Channel Islands.

JP Morgan Cazenove is the sole sponsor of the offering. Morgan Stanley Securities and Citigroup Inc are joint book-runners.

BAE Systems plc added 1.2% to 353.50 pence after the weapons and aviation group announced that the board is recommending a final dividend of £0.096 per share compared to £0.087 in 2008, bringing the total dividend for the year to £0.16 per share compared to £0.145 in 2008, an increase of 10%. The dividend, which will be paid on June 1 to shareholders registered on April 23.

Caledonia Investments plc rose 0.4% to 1,565.00 pence after the investment trust declared a second interim dividend for the year March 31.

Carillion plc rose 1.2% to 289.60 pence after the support services company announced that it has been appointed as one of four framework contractors to deliver the first phase of the Highways Agency''s Managed Motorways program valued up to £2 billion.

Eurasian Natural Resources Corporation Plc added 1.1% to 1,018.00 after the Kazakhstan-based mining company today announces that it has entered into a conditional agreement to acquire 100% of Enya Holdings BV which holds a 90% interest in Chambishi Metals PLC.

Halfords Group plc rose 8.1% to 423.50 pence and auto parts retailer announced the acquisition of Nationwide Autocentres with 224 outlets for cash of £73.2 million.

Kingfisher plc rose 1.7% to 217.00 pence after the DIY retailer said pre-tax profit of £368 million in fiscal 2009 and fiscal 2010 are likely to be ahead of consensus estimates.

Ladbrokes plc slipped 4.4% to 149.70 pence after the bookmaker said pre-tax profit dropped to £191.3 million from £265.6 million.

The Morgan Crucible Company plc fell 0.6% to 165.00 pence after the engineer said full-year revenue increased 12.9% to £942.6 million from £835.0 million a year ago.

Reed Elsevier plc advanced 0.2% to 494.50 pence after the publisher said full-year net profit declined 18% to £391 million from £476 million pounds a year ago.

VT Group plc added 2.9% to 639.50 pence after the company rejected the revised proposal from Babcock International Group plc. VT Group is also trying to acquire Mouchel Group, a maintenance company.

Babcok International Group revised its bid between 680 pence and 715 pence per VT share. VT said that the Babcok’s offer continues to “significantly undervalue” the company.

Wood Group (John) plc rose 0.3% to 348.00 pence an energy services contractor has been awarded a three-year operations and maintenance support services contract by Chevron North Sea Limited for its Alba, Captain and Erskine fields valued at £12 million.