UK Rates on Hold; Schroder Surges 6%

123jump.com Staff
04 Mar, 2010
New York City

The Bank of England left its key lending rate on hold at 0.5% and kept its plan to purchase

[R]4:00 PM London, 11:00 AM New York – The Bank of England left its key lending rate on hold at 0.5% and kept its plan to purchase £200 billion government bonds unchanged. Aviva Plc reported £1.09 billion in 2009 net income. Schroder surged 6% after it reported 2009 net fund flows of £15 billion and assets under management surged 35%.[/R]

The European Central Bank left its key rate unchanged at 1% and the Bank of England left its reference rate at 0.5%. Central banks are in a holding pattern as companies cut investments and unemployment hovers near record high.

The Monetary Policy Committee left its target plan to purchase UK government bonds unchanged at £200 billion.

The average price of a UK home declined in February 1.5% from January to £166,857 according to the latest data released by Halifax, the division of Lloyds Banking Group Plc. The home prices in the month from a year ago increased 4.2%.

Schroders Plc reported net inflow of £15 billion in 2009 after suffering net outflows of £9.6 billion 2008 as markets regain their footings. Schroders with a total asset under management of £148.4 billion is now the largest publicly traded fund manager by asset followed by £144.1 billion in assets managed by Aberdeen Asset Management Plc.

Greek workers union occupy finance ministry in central Athens as demonstrators press government to ease budget cuts and lower taxes.

The Friday meeting between Greek prime minister and German Chancellor is not likely to finalize aid package. Chancellor Merkel in a local television denied that meeting is about bailout package responding to the voter resistance to any assistance to Greece.

In London FTSE 100 Index closed lower 6.05 or 0.11% to 5,527.16 and the pound edged higher to close at $1.510, near 10-month low and edged higher to close at €1.107.

The yield on 2-year gilts declined 2 basis points to 1.05%.

Gainers & Losers

Aggreko PLC fell 2.1% to 1,020.00 pence after the temporary power and temperature control provider said fiscal 2009 revenues rose 8% to £1.02 billion from £946.6 million a year ago. Net profit for the year rose 37% to £168.4 million or 62.42 pence per diluted share compared to net profit of £122.7 million or 45.56 pence per share a year ago.

AMEC plc slipped 6.4% to 768.00 pence after the provider of consultancy; engineering and project management services said fiscal 2009 revenues fell 3% to £2.54 billion from £2.61 billion a year ago. Net profit for the year fell 14% to £171.7 million or 51.5 pence per diluted share compared to net profit of £199.7 million or 59.9 pence per share a year ago.

Aviva plc fell 1.7% to 383.40 pence after the provider of life and pension products said fiscal 2009 gross written premiums fell 4% to £34.7 billion from £36.2 billion a year ago. Net profit for the year was £1.1 billion or 37.5 pence per diluted share compared to net loss of £915 million or 36.8 pence per share a year ago.

Avis Europe plc closed unchanged at 32.50 pence an international vehicle rental services company said fiscal 2009 revenues fell 17.6% to £1.4 billion from £1.7 billion a year ago. Net profit for the year was £0.2 million compared to net loss of £9.9 million or 1.1 pence per share a year ago.

Balfour Beatty plc decreased 0.1% to 278.20 pence an engineering, construction and services group said fiscal 2009 revenues rose 8.4% to £10.3 billion from £9.5 billion a year ago. Net profit for the year rose 9% to £213 million or 37.3 pence per diluted share compared to net profit of £196 million or 11.1 pence per share a year ago.

Cobham plc declined 0.8% to 246.50 pence after the aerospace and defense contractor said fiscal 2009 revenues rose 28% to £1.88 billion from £1.47 billion a year ago. Net profit for the year rose 95% to £185.8 million or 16.17 pence per diluted share compared to net profit of £95.4 million or 8.34 pence per share a year ago.

easyJet plc rose 1.0% to 432.60 pence after the airline said its load factor for the month of February declined 1.7% from the previous year while the number of passengers carried in the month increased over 12%.

Galiform Plc dropped 5.4% to 81.80 pence after the kitchen supplier said fiscal 2009 revenues fell 4.5% to £769.5 million from £805.7 million a year ago. Net profit for the year was £45.7 million or 7.5 pence per diluted share compared to net loss of £51.2 million or 8.4 pence per share a year ago.

Hardy Oil and Gas plc fell 8.3% to 226.50 pence an international oil and gas company said fiscal 2009 revenues fell 57% to $7.7 million from $17.3 million a year ago. Net loss for the year was $6.5 million or $0.10 per diluted share compared to net profit of $7.5 million or $0.11 per share a year ago.

IMI plc rose 0.1% to 579.50 pence an engineering solutions provider said fiscal 2009 revenues fell 5% to £1.8 billion from £1.9 billion a year ago. Net profit for the year rose 14% to £132.4 million or 40.6 pence per diluted share compared to net profit of £116.0 million or 35.1 pence per share a year ago.

Novae Group Plc rose 0.6% to 315.00 pence after the non-life insurer said fiscal 2009 revenues rose 8% to £335.7 million from £310.2 million a year ago. Net profit for the year fell 29% to £26.4 million or 36.1 pence per diluted share compared to net profit of £37.1 million or 50.2 pence per share a year ago.

Psion PLC closed unchanged at 88.00 pence after the technology group said fiscal 2009 revenues fell 14.7% to £170.0 million from £199.4 million a year ago. Net loss for the year was £7.15 million or 5.09 pence per diluted share compared to net loss of £12.0 million or 8.58 pence per share a year ago.

Robert Walters plc fell 0.4% to 210.00 pence after the global recruitment firm said fiscal 2009 revenues fell 11% to £300.4 million from £337.3 million a year ago. Net profit for the year fell 98% to £240,000 or 0.3 pence per diluted share compared to net profit of £12.2 million or 16.6 pence per share a year ago.

Schroders plc increased 3.4% to 1,279.00 pence and the company said funds under management increased to £148.4 billion from £110.2 billion a year ago.

Spirent Communications plc added 2.2% to 112.10 pence after the communications technology company said fiscal 2009 revenues rose 6% to £272.1 million from £257.9 million a year ago. Net profit for the year fell 22% to £58.1 million or 8.67 pence per diluted share compared to net profit of £74.8 million or 10.06 pence per share a year ago.

Spirax-Sarco Engineering plc rose 1.2% to 1,314.00 pence after the engineer that provides services and products for steam-using and specialist peristaltic pumping markets sales increased 3% to £518.7 million from £502.3 million in 2008.

SVG Capital plc gained 6.1% to 142.00 pence after the private equity investor publisher said fiscal 2009 net profit was £22.9 million or 8.0 pence per diluted share compared to net loss of £864.4 million or 621.5 pence per share a year ago.

Trinity Mirror plc gained 5.3% to 153.80 pence after the newspaper publisher said fiscal 2009 revenues fell 12.4% to £763.3 million from £871.7 million a year ago. Net profit for the year was £29.3 million or 11.4 pence per diluted share compared to net loss of £59.1 million or 22.6 pence per share a year ago.

VT Group plc rose 0.5% to 679.50 pence after the support services group confirmed that it had made a final proposal to Mouchel Group plc.

FTSE 100 Index Movers

Of the stocks in the FTSE 100 index, 43 increased, 56 declined and 3 were unchanged.

AMEC Plc decliners in the FTSE 100 index with a loss of 6.70% followed by losses in Fresnillo Plc of 3.22%, in Aviva Plc of 2.61%, in Admiral Group Plc of 2.58%, and in Randgold Resources Ltd. of 2.12%.

Schroders Plc led gainers in the FTSE 100 index with a rise of 6.29% followed by increase in Schroders Plc of 5.99%, in The Royal Bank of Scotland Group Plc of 3.80%, in Burberry Group Plc of 2.78%, and in Prudential Plc of 2.60%.