UK Stocks Down; Wolseley Surges 12%

Mayank Mehta
23 Feb, 2010
New York City

UK stocks decline on a weakness of resource stocks and commodities. British Airways cabin crew voted for a strike if talks with management fail. Minerva Plc reported its first profit in two years on higher valuation of properties. Wolseley Plc surged 12% on estimated earnings estimate.

[R]6:00 PM London – UK stocks decline on a weakness of resource stocks and commodities. British Airways cabin crew voted for a strike if talks with management fail. Minerva Plc reported its first profit in two years on higher valuation of properties. Wolseley Plc surged 12% on estimated earnings estimate.[/R]

UK stocks traded volatile and closed lower after an index of confidence in the U.S. declined.

In London FTSE 100 Index closed lower 36.98 or 0.69% to 5,315.09 and the pound traded at $1.5401.

British Airways’ 12,000 cabin crew overwhelmingly voted in favor of walkout. More than 80% of votes were in favor of the strike and union leaders were given authority to call a strike at anytime they prefer.

British Airways accelerated its talks with the union to avert the first strike since 1997.

Minerva Plc reported six months income of 45.6 million or 27.6 pence compared to a loss of 186.7 million pounds or 115.9 pence. The real estate developer reported its first profit in nearly two years.

FTSE 100 Index Movers

Of the stocks in the FTSE 100 index, 25 increased, 76 declined and 1 were unchanged.

Eurasian Natural Resources Corporation Plc decliners in the FTSE 100 index with a loss of 3.76% followed by losses in Xstrata Plc of 3.39%, in Fresnillo Plc of 3.34%, in Lonmin Plc of 3.25%, and in Cairn Energy Plc of 3.13%.

Wolseley Plc led gainers in the FTSE 100 index with a rise of 12.49% followed by increase in Intertek Group Plc of 5.75%, in Smith & Nephew Plc of 1.43%, in Serco Group Plc of 1.34%, and in Reed Elsevie Plc of 1.20%.

Stock Movers

Weak oil prices in London trading dragged oil explorers. BP Plc decreased 1.4% to 572 pence, Cairn Plc decreased 3.1% to 337 pence and Tullow Oil declined 3.1% to 1,195 pence.

Croda International Plc surged 7.1% to 901 pence after the company said its 2010 trading is meeting the strong the second half performance in the second half.

Drax Group Plc declined 1.4% to 410.8 pence after power station operator reported full year net income declined 22%.

Elementis Plc increased 8% to 57.25 pence after the company made positive comments for the year and said that the early indications for trading are positive.

Kerry Group Plc increased 2.4% to 23.30 euros after net income in 2009 increased to 201.2 million euros from 177 million euros a year ago.

Spice Plc dropped 16% to 46 pence after the company said its earnings are going to be “slightly higher” higher than 32.3 million pounds.

VT Group Plc increased 0.6% or 4 pence to 664 pence after the company has enough investor confirmation to ask Babcock International Group Plc to revise its offer.

Wolseley Plc surged 12% to 1,630 pence after it estimated adjusted earnings of 326 million pounds.

Mining stocks closed lower after commodities weakened in the last hour of trading. Xstrata Plc decreased 3.4% to 1,055 pence and Fresnillo Plc dropped 3.3% to 751.50 pence.