U.K. Stocks Gain; British American Tobacco, Yell Lead Advance

Source from:  By Adam Haigh May 7 (Bloomberg) 05/08/2008

U.K. stocks rose, sending the benchmark FTSE 100 Index to a four-month high, led by British American Tobacco Plc after the maker of Lucky Strike cigarettes reported profits which beat analysts' estimates. BP Plc and Royal Dutch Shell Plc, Europe's largest oil producers, advanced as oil traded near a record high. Yell Group Plc soared after U.S.-based Idearc Inc., the publisher of Yellow Pages phone directories, posted profit that topped estimates. The FTSE 100 added 30.3, or 0.5 percent, to 6,244.5, the highest since Jan. 9, at 12:43 p.m. in London. The FTSE All-Share Index also increased 0.5 percent, as did Ireland's ISEQ Index. British American Tobacco advanced 1.9 percent to 1,975 pence after saying first-quarter profit gained 21 percent to 599 million pounds ($1.18 billion), beating the 559 million-pound median estimate of six analysts surveyed by Bloomberg. BP rallied 1.6 percent to 620 pence. Shell climbed 0.7 percent to 2,059 pence. Oil reached an all-time high of $122.73 a barrel in New York yesterday. Crude for June delivery traded at $121.89 as of 12:23 p.m. in New York today. Yell, which publishes the U.K.'s Yellow Pages phone directory, rallied 8 percent to 189.75 pence. Idearc yesterday reported first-quarter profit of $111 million, or 76 cents a share, beating the 62-cent average estimate of three analysts in a Bloomberg survey. Rightmove Plc, the operator of the U.K.'s largest residential property Web site, lost 2.7 percent to 399.75 pence. Cazenove cut its recommendation on the shares to ``in-line'' from ``outperform,'' citing the ``negative news flow on the housing and mortgage markets.'' The following stocks also rose or fell in the U.K. and Irish markets. Stock symbols are in parentheses. U.K. Companies: EasyJet Plc (EZJ LN) added 7 pence, or 2.4 percent, to 304.5. Europe's second-biggest discount airline reported a first- half loss of 43.3 million pounds, narrower than the 46.5 million- pound loss analysts surveyed by Bloomberg had forecast. Mitchells & Butlers Plc (MAB LN), the U.K. owner of All Bar One pub, added 14 pence, or 4.3 percent, to 339.5. Robert Tchenguiz bought 40.44 million pounds ($79 million) worth of shares following a share sale by Kaupthing Bank Hf, according to people close to the situation. Spokesmen for Tchenguiz were not immediately available to comment. Rank Group Plc (RNK LN), the second-largest U.K. bingo-club and casino owner, fell 4 pence, or 4.2 percent, to 90.25, the most in five weeks, after reporting a drop in sales and forecasting a ``challenging'' year. WSP Group Plc (WSH LN), the U.K. engineering company that helped design New York's Freedom Tower, gained 12 pence, or 2 percent, to 603 after saying its first-quarter financial performance is ``in line'' with forecasts. The ``long-term order book has grown significantly to a record 1.2 billion pounds,'' the London-based company said in a Regulatory News Service statement today. Irish companies: Anglo Irish Bank Plc (ANGL ID), Ireland's third-biggest bank, rose 47.5 cents, or 5.2 percent, to 9.675 euros after saying first-half earnings jumped 19 percent to 548 million euros ($849 million). CRH Plc (CRH ID) lost 26 cents, or 1.1 percent, to 23.75 euros. The world's second-biggest maker and distributor of building materials said a weaker U.S. dollar and deteriorating markets in North America and Europe will make a 16th straight year of profit growth ``more challenging.'' To contact the reporter on this story: Adam Haigh in London at ahaigh1@bloomberg.net Enditem