UK Confidence Index Up, Standard Chartered Rises

Mayank Mehta
03 Mar, 2010
New York City

UK indexes and stocks closed higher after service industry index showed expansion and consumer confidence in February reached a two-year high. Standard Chartered Plc reported record 2009 net income.

[R]4:00 PM London, 11:00 AM New York – UK indexes and stocks closed higher after service industry index showed expansion and consumer confidence in February reached a two-year high. Standard Chartered Plc reported record 2009 net income.[/R]

The latest survey in the service industry suggested expansion in February, resource stocks and commodities advanced and Standard Chartered Plc reported record 2009 earnings.

According to the Chartered Institute of Purchasing and Supply and Management the index advanced to 58.4 from 54.4 in January.

Consumer confidence rose in February, the index in the month gained eight points to 80 from the previous month. Nationwide index of sentiment increased to a two-year high.

In London FTSE 100 Index closed higher 49.15 or 0.90% to 5,533.21 and the pound edged higher to close at $1.502 and edged higher to close at €1.102.

The Bank of England is expected keep rate on hold at 0.5% and not curb government bond purchase plan of 200 billion.

Gainers & Losers

Arriva plc increased 3.5% to 549.00 pence the public transport operator said fiscal 2009 revenues rose 3.6% to £3.15 billion from £3.04 billion a year ago. Net profit for the year rose 4% to £108.5 million or 54.4 pence per diluted share compared to net profit of £104.5 million or 52.3 pence per share a year ago.

Carillion plc rose 1.4% to 291.00 pence after the construction company said fiscal 2009 revenues rose 3.8% to £5.4 billion from £5.2 billion a year ago. Net profit for the year rose 22% to £132.4 million or 33.2 pence per diluted share compared to net profit of £108.3 million or 28.2 pence per share a year ago.

Care UK plc gained 7.8% to 444.75 pence after the Barlborough NHS Treatment Centre was placed in the top 20% of all acute NHS trusts in the UK.

Dialight plc closed unchanged at 270.00 pence after the supplier of electronic components applications said fiscal 2009 revenues fell 0.8% to £77.3 million from £77.9 million a year ago. Net profit for the year rose 54% to £5.4 million or 17.1 pence per diluted share compared to net profit of £3.5 million or 10.9 pence per share a year ago.

Great Portland Estates plc rose 0.2% to 290.60 pence after the real estate investment trust announced a second interim dividend of 5 pence per share to be paid on April 1. Total dividend for the year to March 31 is 8 pence per share or a total payout for the year of £25.0 million, up from £21.7 million for the year to March 31.

ITV plc rose 2.0% to 56.20 pence after the broadcasting company said fiscal 2009 revenues fell 7% to £1.88 billion from £2.03 billion a year ago. Net profit for the year was £91.0 million or 2.3 pence per diluted share compared to net loss of £2.55 billion or 65.9 pence per share a year ago.

International Personal Finance plc fell 4.0% to 199.60 pence after the home credit provider said fiscal 2009 revenues fell 1.2% to £550.2 million from £557.1 million a year ago. Net profit for the year fell 35% to £32.8 million or 12.70 pence per diluted share compared to net profit of £50.6 million or 19.70 pence per share a year ago.

Irish Life & Permanent plc a provider of personal financial services said fiscal 2009 net loss was €313 million or 116.8 cents per diluted share compared to net profit of €49 million or 18.3 cents per share a year ago.

Lavendon Group plc advanced 3.2% to 63.50 pence after the provider of powered access said fiscal 2009 revenues fell 13% to £226.9 million from £259.8 million a year ago. Net loss for the 2009 was £43.4 million or 77.45 pence per diluted share compared to net profit of £17.4 million or 35.16 pence per share a year ago.

RPS Group plc dropped 1.9% to 175.80 pence an environmental consultancy said fiscal 2009 revenues fell 5.7% to £443.9 million from £470.5 million a year ago. Net profit for the year fell 11% to £33.6 million or 15.59 pence per diluted share compared to net profit of £37.9 million or 17.75 pence per share a year ago.

Salamander Energy plc rose 0.6% to 260.90 pence after the Asia-focused energy explorer agreed to acquire all of the shares of Bontang Energy Limited, the holder of a 20% interest in its operated Bontang PSC from PT Eksindo Petroleum Tabuhan.

Sportingbet Plc rose 0.7% to 64.00 pence an online gaming company said second quarter revenues rose 22.3% to £52.6 million from £43.0 million a year ago. Net profit for the quarter rose 17.7% to £9.3 million or 1.8 pence per diluted share compared to net profit of £7.9 million or 1.6 pence per share a year ago.

Standard Chartered Plc added 2.3% to 1,626.50 pence after the bank said 2009 net interest income rose 3% to $7.6 billion from $7.4 billion a year ago. Net profit for the 2009 rose 4.3% to $3.38 billion or 165.3 cents per diluted share compared to net profit of $3.24 billion or 191.1 cents per share a year ago.

Taylor Wimpey plc dropped 2.7% to 36.91 pence after the home builder announced that the board did not propose an interim dividend and is not proposing a final dividend for 2009 as in 2008.

UNITE Group plc plunged 9.7% to 258.00 pence after the developer and manager of student accommodation said fiscal 2009 revenues rose 99% to £265.4 million from £133.6 million a year ago. Net loss for the year was £34.9 million or 25.9 pence per diluted share compared to net loss of £115.9 million or 92.4 pence per share a year ago.

Vedanta Resources plc dropped 1.6% to 2,512.00 pence after the India-focused miner announces the final terms of its offering of $805 million of convertible bonds due 2017 announced today.

FTSE 100 Index Movers

Of the stocks in the FTSE 100 index, 70 increased, 29 declined and 3 were unchanged.

RSA Insurance Group Plc decliners in the FTSE 100 index with a loss of 4.07% followed by losses in InterContinental Hotels Group Plc of 2.21%, in Resolution Limited of 1.87%, in Diageo Plc of 1.37%, and in Hammerson Plc of 1.24%.

Lonmin Plc led gainers in the FTSE 100 index with a rise of 5.66% followed by increase in Standard Chartered Plc of 5.28%, in Legal & General Group Plc of 5.05%, in Kazakhmys Plc of 4.84%, and in Anglo American Plc of 4.03%.