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Saturday 12th of February 2011
February 9, 2011    

International Power drops 21 percent in London trade

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by Elaine Frei
International Power drops 21 percent in London trade

European equities markets were lower Wednesday after recent gains in what some analysts were calling an expected correction.

The FTSE 100 was down 0.64 percent to 6,052.29 in London, while the FTSE 250 dropped 0.29 percent to 11,796.6.

The biggest decline came in the utilities sector, where International Power (LSE: IPR) dropped 21.48 percent in a mostly higher sector where water utility Severn Trent (LSE: SVT) led gainers as it added 1.87 percent.

While International Power was the biggest decliner on the 100, polymer producer Victrex (LSE: VCT) fell the most on the 250, dropping 6.78 percent.

Miners were all lower except for Talvivaara Mining Company (LSE: TALV), which added 2.65 percent and Gem Diamonds (LSE: GEMD), which was up 0.18 percent while Antofagasta led decliners in the sector as it dropped 3.77 percent, followed by Centamin Egypt (LSE: CEY), which was 3.23 percent lower.

The energy sector was also mostly lower, with declines led by a 5.11 percent drop for Essar Energy (LSE: ESSR), while Petrofac Ltd (LSE: PFC) was up 1.38 percent for the best performance in the sector.

Leading gains on the 100 was aerospace and automotive engineering group GKN (LSE: GKN), which added 2.66 percent,, while chipmaker CSR (LSE: CSR) added 9.28 percent to lead gains on the 250.

The London Stock Exchange Group (LSE: LSE) was up 3.14 percent after it said it will buy TMX Group Inc (TSX: X), which owns the Toronto Stock Exchange, in an all-share deal.

Consumer goods group Reckitt Benckiser (LSE: RB) dropped 5.08 percent after its fourth quarter results did not meet expectations and said that sales won’t grow as quickly this year as they did last year.

The FTSE Eurofirst 300 was down 0.43 percent to 1,171.25 while the Dax fell 0.03 percent to 7,320.9, the IBEX was 0.27 percent lower to 10,935.6 and the CAC-40 dropped 0.43 percent to 4,090.74.

Most markets in the Asia-Pacific region were lower Wednesday, although Australia’s markets saw gains as the Sydney Ordinaries added 0.24 percent to 4,995.1 and the S&P/ASX200 gained 0.29 percent to 4,904.8.

The Nikkei 225 was 0.17 percent lower to 10,617.8 in Tokyo, and the Mothers market was down 0.08 percent to 486.6, but the Topix index managed to add 0.02 of a point to 10,617.8, with the declines coming largely on retreats by businesses related to China, after the announcement that the People’s Bank of China will raise interest rates again, effective today.

Data storage media manufacturer TDK (TYO: 6762), with its largest market in China, was down 0.9 percent, while construction machinery maker Komatsu (TYO; 6301) fell 1.7 percent, tractor manufacturer Kubota (TYO; 6236) fell 1.8 percent and Toshiba Machine Co (TYO; 6502) dropped 4.5 percent.

Electrical engineering and software group Yokogawa Electric (TYO; 6841) was down 11 percent after it said it won’t pay a dividend this year.

The Tokyo real estate sector declined after the office vacancy rate in Tokyo rose to just over 9 percent, with Mitsubishi Estate falling 1.8 percent, while Mitsui Fudosan (TYO: 8801) was 2.5 percent lower and Sumitomo Realty & Development (TYO: 8803) dropped 2.8 percent after it said its net income was down 6 percent in the first three quarters of the fiscal year, which ended 31 December.

Toyota Motor (TYO: 7203) added 5.2 percent after it said that its net income could more than double in the full year, and after a US government report absolved the carmaker from fault for incidents of sudden acceleration in some of its vehicles, which triggered huge recalls last year.

The Shanghai Composite was down 0.89 percent to 2,774.06, while India’s Sensex fell 1.03 percent to 17,592.8, the Straits Times Index was 1.09 percent lower to 3,150.56 in Singapore, Taiwan’s Taiex was down 1.15 percent to 9,006.82, the Kospi fell 1.17 percent to 2,045.58 in South Korea and Hong Kong’s Hang Seng dropped 1.36 percent to 23,164.

New York markets were lower in early afternoon trade in New York, with the Dow Jones Industrial Average 0.1 percent lower to 12,221 while at the same time the S&P 500 had dropped 0.37 percent to 1,319.66 and the Nasdaq Composite was down 0.21 percent to 2,791.11.

Crude oil prices were lower in midday trade in New York, but the last report from London had Brent crude nearly $1 higher, to over $100 per barrel.

Precious metals prices were slightly lower in New York at midday, while copper prices had dropped 5 cents per pound.

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