UK stocks increased today, thereby rebounding from the biggest retreat within last 3 months. Companies such as Arm Holdings Plc., BP Plc. published reports that exceeded the estimates set by the analysts. The FTSE 100 Index, the benchmark gauge of UK advanced by 0.6%, thereby posting a gain of 35.92 points. It has closed the day at 6282.76. Only on yesterday, the gauge experienced a decline of 1.6%, mainly because of the fall of Italian & Spanish bonds and signs of possible political turmoil in some of the weakest economies of Europe. In 2013, the benchmark gauge has so far posted a gain of 6.5%, marking the current year’s start the best since 1998. Incidentally, the broader FTSE All Share Index increased by 0.6% as well, while the benchmark gauge of Ireland, ISEQ index experienced a fall of 0.4%. The total volume of shares changing hands on the FTSE 100 was 8.6% more than the average of last 30 days.
Another major reason behind the advance of the shares is the unexpected growth of industries of UK. The gauge measuring same marks the fastest pace of growth in last 4 months for the month of January. This eased the concern of many economists who were afraid that UK was heading towards a triple dip recession.
ARM, known for its design of chips for Apple products published results that showed 19% growth in its 4th quarter revenue. ARM shared increased by 4.4% as well and each of its shares is currently priced at 931 pence. This marks the highest level of the AMR stocks in last 12 years.
On the other hand, BP shares advanced by 6.65 pence and is at 468.7 pence per share now. Only yesterday, it experienced a decline of 2.2%. The 4th quarter profit of BP, reportedly, is of $4 billion. This is higher than the initial estimates set by the analysts that of $3.7 billion. The company also announced that the oil and gas production of the same should increase in the New Year by a considerable margin.
According to the Chief Investment Officer of Lloyds Private Banking, Tim Harris, the UK earnings season is going on fine and this should reflect the overall economy of Europe as well. He added that the UK market is in a kind of reparation phase now and they are basically rebuilding the balance sheets.