London close: Blue chips surge continues

30th Jul 2009 16:42

Corporate newsflow and resurgent miners sent Footsie to within a whisker of its highest close this year. Investors piled into blue chips after a string of household names reported earnings this morning. Triple-digit gains for the Dow added to the upward momentum in the afternoon. Telecoms giant BT racked up a double-digit percentage gain after quarterly figures were not as bad as feared, even though its pension deficit soared by £3bn. Adjusted operating profits came in at £1.3bn against £1.4bn this time last year.Royal Dutch Shell, Britain's biggest company by market value, was one of the few to buck the rising trend after the oil giant said its second quarter results were affected by the weak global economy as net profit slumped 70%. The withdrawal of two generic competitors to heart drug Toprol XL helped AstraZeneca boost second quarter sales and raise full-year earnings targets. Pre-tax profit for the three months to 30 June rose 14% to $2.6bn and core profit leapt 32% to $3.4bn. Specialist publisher Reed Elsevier is the worst performer after announcing plans to increase its shares in issue by around 9.9% through a placing to pay off debts after an acquisition. Profit before tax more than halved, however, to £188m from £393m as net finance costs ballooned to £138m from £67m. Pennon was another in the doghouse after announcing fund raising plans. The water firm intends to offer £120m of senior unsecured convertible bonds. Broadcaster and broadband provider BSkyB posted a sharp rise in profits in the year to June 30 as householders continued splashing out on home entertainment amid tough economic conditions. Aeroengine group Rolls-Royce reiterated its guidance for the full year but said the global trading environment remains 'very difficult', adding that the recovery is likely to be slow. Even so, underlying pre-tax profits rose 9% to £445m in the six month ended 30 June, sparking a rush into the shares.Its fellow aerospace and defence stock BAE Systems swung to a half-year loss and sparked investors with a sharply higher pension fund deficit.Miner Kazakhmys' output is likely to be lower in the second half but it remains on track to meet its full year target. The shares move strongly higher as did sector peers Antofagasta, Rio Tinto, Xstrata, ENRC, Vedanta and Lonmin. Lonmin also got upgrade from Citigroup, which now rates the shares a "buy". Gas supplier Centrica retreats after posting a net profit of £534m for the first half of 2009, up from £418m a year earlier. The result was ahead of market expectations but the group warned that low commodity prices will continue to shift profit from the upstream to the downstream, resulting in a reduction in the group's operating profit. Knee and hip joint supplier Smith & Nephew posted a rise in second quarter profits but expects its products that serve the younger more active patient segment to face greater challenges. Tobacco firm British American hiked its dividend by a quarter as acquisitions continued to drive the firm's profits.Building materials supplier Travis Perkins shot forward despite a 27% drop in half year pre-tax profit as it reported evidence that some of its markets are beginning to stabilise. Wolseley climbed in sympathy even though it predicted on Monday that conditions will continue to deteriorate until the end of 2009. Among second-liners environmental consultancy RPS falls heavily after disappointing results. Profit before taxation and amortisation was virtually flat in the first half of 2009 at £29.2m compared to £28.5m a year earlier. National Express, which last week received a takeover approach from its main shareholder, has scrapped its interim dividend in a bid to reduce debt. Rail and bus group Go-Ahead has agreed to acquire the assets of East Thames Buses from Transport for London (TfL)for £5m. Northumbrian Water will raise its full-year dividend by 6% after increased water and sewerage charges helped the group maintain revenues at previous levels. Safety and sensor group Halma's trading during the first quarter of the financial year has been in line with expectations. Model trains and racing cars group Hornby hit top gear as its said its businesses in the UK, mainland Europe and the USA have continued to experience good demand. Shares in chilled convenience food group Uniq fell sharply after losses for the half year widened as customers switched to cheaper alternatives. e2v technologies, the specialist developer and manufacturer of high technology components and sub-systems, is sharply lower after saying trading remains challenging. Underwriter Novae Group was friendless after sliding into the red at the interim stage. Loss before tax and before foreign exchange movement on non-monetary items was £2.1m in the first half of 2009, compared to an interim profit of £16.8m the year before.Nicola Horlick's bid vehicle, Petersfield Asset Management, has finally ended offer talks with Bramdean Alternatives, the fund management business she floated in 2007.FTSE 100 - RisersBT Group (BT.A) 126.90p +12.60%Wolseley (WOS) 1,311.00p +10.17%Rolls-Royce Group (RR.) 408.00p +8.73%Lonmin (LMI) 1,360.00p +8.37%Eurasian Natural Resources (ENRC) 892.00p +8.32%FTSE 100 - FallersReed Elsevier (REL) 420.00p -12.55%BAE Systems (BA.) 312.00p -4.88%Centrica (CNA) 224.25p -2.92%Pennon Group (PNN) 455.75p -2.62%Severn Trent (SVT) 973.50p -2.06%FTSE 250 - RisersTravis Perkins (TPK) 795.00p +13.57%Charter International (CHTR) 554.00p +10.58%SIG (SHI) 122.50p +9.38%Aquarius Platinum Ltd. (AQP) 255.00p +8.28%Persimmon (PSN) 446.75p +7.91%FTSE 250 - FallersRPS Group (RPS) 183.75p -9.82%Novae Group (NVA) 298.00p -6.95%United Business Media (UBM) 371.25p -3.82%Hikma Pharmaceuticals (HIK) 432.25p -2.81%BTG (BGC) 178.00p -2.60%