FTSE 100 Rises 4.9% in Q1; Enterprise Inns Drops

Mayank Mehta
31 Mar, 2010
New York City

UK stocks traded weak. Investors remained focused on the weakness in Greek bonds and continued worries about the UK housing market. Northern Foods plc said quarterly sales dropped. Pinewood Shepperton plc profits declined. Dairy Crest Group lifts profits outlook.

[R]4:00 PM London, 11:00 AM New York – UK stocks traded weak. Investors remained focused on the weakness in Greek bonds and continued worries about the UK housing market. Northern Foods plc said quarterly sales dropped. Pinewood Shepperton plc profits declined. Dairy Crest Group lifts profits outlook. BG Group and Tokyo Gas sign agreement for LNG sale.[/R]

UK stocks closed lower but the benchmark index managed to hang on fractional gains after a weak U.S. jobs report from the private sector.

The preliminary estimate of annual inflation in the Euro area is expected to be 1.5% in March after rising at 0.9% in February.

In London FTSE 100 Index closed higher 7.32 or 0.13% to 5,679.64 and increased 4.9% in the quarter.

The pound edged higher to close at $1.514 and edged lower to close at €1.120.

Private employers in the U.S. cut payrolls by 23,000 after lowering employment by 24,000 in the previous month. The surprise decline indicated uneven economic recovery and weak employment market.

Gainers & Losers

Bank of Ireland Plc surged 19.7% to 7.90 pence after the banking and financial service provider said nine months net interest income was €2.2 billion. Net loss for the nine months was €1.46 billion or 168.6 euro cents per diluted share.

BG Group plc advanced 1.1% to 1,144.50 pence after the company today announced it had reached agreement with Tokyo Gas Co., Ltd. for the supply of Liquefied Natural Gas from the Queensland Curtis LNG facility to be developed by BG Group''s wholly owned Australian subsidiary QGC Pty Limited.

The British Land Company Plc rose 0.2% to 479.70 pence after the property company has signed a total of 465,000 sq ft of new lettings at its recently completed London office developments since the announcement of its third quarter results in February, with an additional 154,000 sq ft under offer.

The BSS Group plc rose 0.8% to 282.00 pence after the company said today revenues for the year ending March 2010 is expected to be marginally above last year revenues of £1,340.6 million. Revenue growth in the second half is estimated to be 4.3% on an equivalent trading day basis. Like for like revenue in the second half is expected to be up 1.1% against a 6.8% like for like decrease in the first half.

BSkyB increased 3.4% to 602 pence after a regulatory ruling suggested that sports television broadcaster will be able to increase rates more than earlier anticipated.

Compass Group Plc rose 0.8% to 531.00 pence after the catering giant said Wednesday that its organic revenue is stabilizing and is now expected to be broadly flat compared to the first half of last year.

Chesnara plc fell 0.8% to 233.00 pence after the life insurance company said 2009 net insurance premium revenue fell 2.6% to £75.1 million from £77.1 million a year ago. Net profit for the year rose 129.5% to £45.9 million or 45.26 pence per diluted share compared to net profit of £20.0 million or 19.24 pence per share a year.

Carluccio''s Plc rose 0.4% to 90.40 pence after the Italian restaurant chain reported across the company''s stores has continued to perform ahead of the Board''s expectations and in the 26 weeks to March 28, turnover grew by 8% from a year ago.

Dairy Crest Group plc rose 0.8% to 365.30 pence after the milk, butter and cheese supplier said that company plans to spend more on advertising.

Enterprise Inns plc fell 7.0% to 120.70 pence after the tenanted pub group announced that prudential plc group of companies has an aggregate interest of 18,880,276 ordinary shares, representing 3.723% of the total voting rights. Earlier Prudential had an interest of 7.25% of issued share capital of the company.

Entertainment One Ltd increased 3.4% to 67.00 pence after the film distributor forecast full-year results at the top end of the market view.

FirstGroup plc decreased 5.2% to 354.90 pence after the bus and train group said full year profit will be lower on account of weather related charges of £16 million and guided full year cash generation of £100 million cash generation to reduce net debt.

Hilton Food Group Plc added 3.2% to 220 pence after the meat-packaging firm said 2009 revenues rose 13% to £826.1 million from £729.5 million a year ago. Net profit for the year rose 21.7% to £14.0 million or 20.1 pence per diluted share compared to net profit of £11.5 million or 16.5 pence per share a year.

Northern Foods plc rose 0.3% to 60.20 pence after the Goodfellas pizza and Fox’s biscuits group reported like-for-like sales for the full year increased by 1.0% on the prior year. Group like for like sales for fourth quarter were down 1.8% on the prior year, due to the planned exit from low margin frozen business.

Pinewood Shepperton plc rose 0.9% to 154.50 pence after the provider of studio and related services said 2009 revenues fell 6% to £40.3 million from £42.9 million a year ago. Net profit for the year fell 26% to £4.18 million or 8.8 pence per diluted share compared to net profit of £5.65 million or 12.0 pence per share a year.

Tate & Lyle PLC rose 0.2% to 454.70 pence after the sugar and sweeteners maker said that underlying trading in the final quarter was consistent with its expectations outlined earlier.

Topps Tiles Plc plunged 11.4% to 54.00 pence after the flooring retailer estimated first half UK revenues of £91.5 million, 4.5% increase from £87.6 million. When restated on a same reporting week basis the total revenue increase will be in the region of 0.4%.

Revenues from like-for-like UK stores are expected to show an increase of 2.1%.

FTSE 100 Index Movers

Of the stocks in the FTSE 100 index, 46 increased, 56 declined and none were unchanged.

Segro Plc decliners in the FTSE 100 index with a loss of 2.83% followed by losses in Petrofac Limited of 1.72%, in London Stock Exchange Group Plc of 1.66%, in Kingfisher Plc of 1.43%, and in United Utilities Group Plc of 1.41%.

British Sky Broadcasting Group Plc led gainers in the FTSE 100 index with a rise of 3.44% followed by increase in Lloyds Banking Group Plc of 2.30%, in Randgold Resources Ltd. of 2.06%, in Cable & Wireless Worldwide of 1.88%, and in Standard Chartered Plc of 1.73%.