U.K. Stocks Swing Between Gains and Losses as BP Falls and Metals Shares Rise

Strategic Insights -

U.K. stocks experienced a volatile session, with the FTSE 100 Index fluctuating between losses of up to 0.6 percent and gains of up to 0.8 percent as investors reacted to a fall in BP Plc and a rise in metals prices. The benchmark index ultimately gained 3.05 points, or less than 0.1 percent, to close at 5,031.20 as of 12:30 p.m. in London. The market's uncertainty was fueled by concerns about Europe's debt crisis and its potential impact on the economic recovery.

Key Takeaways:

  • BP Plc fell for a third day, sliding to its lowest price since October 2008, with a 4.5 percent decline to 390.55 pence.
  • Metals prices advanced after Reuters reported a surge in China's exports in May and higher-than-estimated new loans, with BHP Billiton Ltd. rising 1.4 percent to 1,793.5 pence and Xstrata gaining 2.4 percent to 946.7 pence.
  • Misys Plc surged 19 percent to 266.5 pence after agreeing to sell its majority stake in its Allscripts subsidiary for approximately $1.3 billion.
  • The FTSE 100 Index remains 14 percent lower than its year-to-date high of 4,574.38, reached on April 15, amid concerns about Europe's debt crisis.
  • Lex van Dam, a fund manager at London-based Hampstead Capital, expressed concerns about the market's anticipation that future earnings will not meet previous expectations, citing cost-cutting measures and increased taxes.
  • The FTSE All-Share Index gained 0.1 percent, while Ireland's ISEQ Index rose 1.7 percent.

Statistics:

  • The FTSE 100 Index gained 3.05 points, or less than 0.1 percent, to close at 5,031.20 as of 12:30 p.m. in London.
  • BP Plc fell 4.5 percent to 390.55 pence, reaching its lowest price since October 2008.
  • Exports from China grew approximately 50 percent from a year earlier, according to Reuters.
  • New loans in China were 630 billion yuan (approximately $92 billion), according to an investor conference.
  • Misys Plc rose 19 percent to 266.5 pence after agreeing to sell its stake in Allscripts.
  • Asos Plc gained 5.1 percent to 664.5 pence, marking its largest one-day gain since May 27.
  • Pretax profit at Asos rose to 20.3 million pounds (approximately $29.3 million) in the year ended March 31, from 14.1 million pounds a year earlier.

Sources:

  • Reuters
  • Euclid Infotech Pvt. Ltd.