By Simon Kennedy
LONDON (MarketWatch) -- British stocks posted a modest rise
Wednesday as investors nervously watched Ireland's ongoing debt
situation and data showed modest improvement in Britain's jobs
picture.
The FTSE 100 index rose 10.66 points, or 0.2%, to close at
5,692.56, as other European markets moved higher after news that
officials from the European Central Bank and International Monetary
Fund would consult with Ireland about the country's debt
crisis.
Worries over Ireland, along with fears of a possible rate hike
in China, knocked about 2.4% off the U.K.'s benchmark index in the
previous session.
U.K. Chancellor of the Exchequer George Osborne said Wednesday
that the country "stands ready" to participate in a bailout of
Ireland. Osborne said contributing to a bailout would help ensure
the stability of the banking system. .
Shares of Royal Bank of Scotland (RBS), the U.K. bank seen as
having the most exposure to Ireland, rose 2.1%, while other banking
stocks were mixed.
In other economic news, the Bank of England said its
rate-setting committee was split three ways at the most recent
meeting in November.
One member called for an increase in the size of the central
bank's asset-repurchase program, while another wanted policy to be
tightened with a quarter-point rate hike. The other seven members
voted to leave rates and the quantitative-easing program
unchanged.
Also, the Office for National Statistics said the number of
persons claiming jobless benefits in October fell by 3,700,
compared to expectations for a rise of 5,000. See full story on
U.K. unemployment data and the Bank of England's minutes.
"It seems unlikely that this was a key factor in preventing a
repeat of yesterday's dazzling fall in global markets, with today's
general lack of direction more likely to be a result of cautious
investors waiting to see how the Irish debt situation plays out
before making any significant moves, " said Yusuf Heusen, senior
sales trader at IG Index.
Among shares on the move, Experian (EXPGY) was the biggest
gainer on the main index, climbing 6.3% after the company reported
a 5.6% rise in fiscal first-half profit and lifted its dividend by
29%.
Deutsche Bank analyst Andy Chu said organic growth in the second
quarter was significantly ahead of market expectations and that the
U.S. credit-services business grew for the first time since the
September quarter of 2008.
Drug company GlaxoSmithKline PLC (GSK) rose 2.4% after an
advisory panel recommended that the U.S. Food and Drug
Administration approve Benlysta, a lupus drug developed by Glaxo
and Human Genome Sciences Inc. (HGSI).
Collins Stewart analyst Emmanuel Papadakis said the
recommendation "should herald the start of a new phase for the
company, with a solid and sustainable midterm outlook" and noted
that several other trials and potential drug approvals in the
coming year could further boost the company's outlook.
On the downside, shares of Centrica PLC dropped 0.4% after a
trading update. The gas utility said operating profit for the year
should be slightly ahead of the consensus forecast, but added that
this would be offset by higher-than-expected interest and tax
charges.
Mining stocks were mostly lower. Vedanta Resources dropped 0.7%,
and African Barrick Gold fell 2.1% as gold prices edged lower.
Also weighing on the main index, several large-cap stocks
declined as they went ex-dividend, meaning they passed the date at
which new shareholders would be eligible to receive a dividend
payout.
Marks & Spencer fell 1.4% and Vodafone Group (VOD) dropped
0.4%.
Outside the main index, shares in Northern Foods PLC and
Ireland's Greencore Group jumped 24.9% and 30.6%, respectively,
after the pair agreed to merge.