Bloomberg News

U.K.’s FTSE 100 Index Advances for Eighth Day; Tullow Oil Climbs

July 05, 2011

July 5 (Bloomberg) -- U.K. stocks climbed for an eighth day, the longest winning streak in almost two years, after a report showed U.S. factory orders rebounded.

Tullow Oil Plc climbed 3.4 percent after the explorer raised its output target. Reckitt Benckiser Plc gained 2.9 percent amid speculation the company may be a takeover target. Rio Tinto Group led mining companies lower.

The FTSE 100 Index rose 10.83, or 0.2 percent, to 6,028.37 at 3:34 p.m. in London after yesterday climbing above 6,000 for the first time since May. The FTSE All-Share Index also advanced 0.2 percent, while Ireland’s ISEQ Index slid 0.4 percent.

The FTSE 100 rallied 5.1 percent last week after Greek lawmakers passed a five-year austerity package, qualifying the country for further aid from the European Union. The gauge had fallen for the previous five weeks amid concern that Europe’s debt crisis was deepening and as U.S. payroll and manufacturing reports trailed forecasts.

A Commerce Department report today showed orders placed with U.S. factories increased 0.8 percent in May, indicating manufacturing may rebound from a slowdown in economic growth.

Tullow Oil rallied 3.4 percent to 1,296 pence after the London-based explorer with the most licenses in Africa raised its full-year production target and said it plans to expand in Sierra Leone and Kenya.

The company expects output to rise to as much as 94,000 barrels of oil equivalent a day after the final wells are completed at the Jubilee field in Ghana in August. It previously gave a forecast of 86,000 barrels to 92,000 barrels a day.

Reckitt Rises

Reckitt Benckiser rose 2.9 percent to 3,588 pence after the Independent said that Unilever Plc and Procter & Gamble Co. may be interested in making a bid for the maker of Nurofen painkillers and Finish dishwasher tablets. The newspaper didn’t say where it got the information.

Rob Orman, a credit analyst at Royal Bank of Scotland Group Plc in London, said a takeover is “unlikely, but cannot be completely ruled out.” He said both Unilever and Procter & Gamble could face competition issues.

Yule Catto & Co. jumped 5.6 percent to 242.9 pence as the Guardian said there is speculation that Dow Chemical Co. is looking at the British chemical maker.

Schroders Plc climbed 1.3 percent to 1,616 pence after UBS AG upgraded the U.K.’s biggest publicly traded fund manager to “buy” from “neutral.”

Rio Tinto, the world’s second-largest mining company, lost 1.1 percent to 4,485.5 pence. Kazakhmys Plc slid 0.4 percent to 1,390 pence and Xstrata Plc slipped 0.9 percent to 1,381 pence.

Intertek Group Plc dropped 3.3 percent to 1,898 pence, the worst performer on the FTSE 100. Analysts at Societe Generale SA downgraded the company to “hold” from “buy.”

--With assistance from Sarah Shannon and Morwenna Coniam in London. Editors: Will Hadfield, Andrew Rummer

To contact the reporter on this story: Sarah Jones in London at sjones35@bloomberg.net

To contact the editor responsible for this story: Andrew Rummer at arummer@bloomberg.net


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