Footsie bounces after early losses

Apr 24 2008 by Graeme King, The Journal

THE UK markets spent the morning in the red, with the leading FTSE Index losing 55.9 points by lunchtime, before recovering to close in positive territory.

A number of banking stocks featured on the fallers’ board, after Royal Bank of Scotland announced on Tuesday its plans to raise £12bn from a rights issue.

In the regional portfolio, GlaxoSmithKline posted first quarter results for the three months to March 31, with sales of £5.686bn, up from £5.592bn in the same period last year.

Pre-tax profits were down over 9% to £1.9bn and earnings per share were down 1.4p to 25.6p. Pharmaceutical sales were impacted by a 56% decline in sales of its diabetes drug Avandia and Glaxo also suffered from an increase in generic competition.

The results were in line with expectations and shares traded 18p higher to finish on 1120p.

In an interim management statement, Arriva reported growth in revenue of more than 60% for the first three months of the year, relative to the comparable period in 2007. This reflected growth in mainland Europe.

The group confirmed it has a hedging policy on fuel in place and therefore does not expect the rising prices to have any material impact during 2008.

Company chairman Sir Richard Broadbent commented that ‘the outlook for 2008 is positive and we are confident of substantial revenue and earnings growth’. Shares in Arriva ended the day 24.5p lower on 638p.

Anna McKechnie anna.mckechnie@brewin.co.uk