4:00 PM London, 11:00 AM New York – UK stocks rebounded after early losses on the worries that Dubai debt rollover may presage a wider problem in the region. The banks in the UK and Europe dropped more than 5% after RBS confirmed that UK banks have $50 billion of loan exposure to UAE.
UK stocks managed to erase losses in the day on the worries that Dubai loan rescheduling may generate losses at UK banks. Royal Bank of Scotland said that UK banks have nearly $50 billion of loans exposure to U.A.E.
RBS also said that French banks have loans $11.3 billion and German banks have loaned $10.2 billion. Swiss banks have loaned $4.3 billion and Italian banks have lent $1.9 billion to the emirates. The data reflect direct lending at the end of June and does not capture the bonds issued and securitized by banks.
According to the data available from Bank of International Settlements and Emirates Banks Association said that HSBC had the highest loan exposure to UAE that may be as high as $11 billion followed by Standard Chartered Bank with $7.8 billion.
The FTSE 100 Index closed higher 60.24 or 1.1% to 5,254.37 and the pound edged lower to close at $1.643 and at €1.102.
Gainers & Losers
Accident Exchange Group Plc closed unchanged at 14.00 pence.
Ascent Resources Plc dropped 4.0% to 6.24 pence after the oil and gas explorer has conditionally raised £6 million through the sale of 120 million new ordinary shares at a price of 5 pence per share.
The Carphone Warehouse Group PLC rose 0.9% to 194.10 pence after the mobile phone retailer said first-half revenues rose 13% to £789 million from £697 million a year ago. Net profit for the first-half fell 96.5% to £20 million or 2.2 pence per diluted share compared to net profit of £574 million or 62.6 pence per share a year ago.
Chamberlin plc closed unchanged at 50.50 pence after the foundry and engineering firm said that demand has largely stabilized in most areas of the business and some sectors appear to be showing signs of recovery.
Domino''s Pizza UK & IRL plc rose 1.0% to 298.00 pence.
Hilton Food Group Plc increased 3.3% to 186.00 pence after the meatpacker said that it has signed a long term agreement with Coop Danmark, Denmark’s leading food retailer, to supply retail packaged fresh meat from 2011.
Hogg Robinson Group plc closed unchanged at 38.00 pence an international corporate travel services company said first-half revenues fell 9% to £155.3 million from £171 million a year ago. Net profit for the first-half fell 50% to £1.7 million or 0.5 pence per diluted share compared to net profit of £3.4 million or 1.1 pence per share a year ago.
Holidaybreak plc added 2.4% to 255 pence after the travel group said full-year revenues rose 4% to £473.4 million from £455.1 million a year ago. Net profit for the full-year fell 84% to £2.8 million or 4.7 pence per diluted share compared to net profit of £18 million or 31.3 pence per share a year ago.
International Public Partnership Limited the public and social infrastructure investment group rose 0.2% to 114.00 pence.
Morgan Sindall plc the contractor fell 0.5% to 529.50 pence.
Pinewood Shepperton plc fell 3.8% to 126.00 pence after the film studio said the planning application was refused on October 21, principally on the grounds that the development is in the green belt. The company will contest this application.
The Royal Bank of Scotland Group plc the bank added 1.5% to 33.50 pence and the bank has agreed to join the Asset Protection Scheme proposed by the UK government which will be put to the shareholders’ approval on December 15.
The bank also led the consortium of banks to raise debt for Dubai and said that UK and European banks are lead lenders to Dubai World.
RPC Group Plc advanced 4.7% to 226.00 pence after the manufacturer of rigid plastic packaging said first-half revenues fell 7.6% to £351.9 million from £381 million a year ago. Net profit for the first-half was £8.0 million or 8.0 pence per diluted share compared to net loss of £3.1 million or 3.1 pence per share a year ago.
SnackTime PLC the vending machine operator increased 5.4% to 192.50 pence.
:Article Source:ticker.com
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