U.K. Stocks Advance as ARM, AB Foods Rally on Earnings
ARM jumped the most in 11 weeks after saying that demand increased for its graphics and processing technology. AB Foods added 1.8 percent as the owner of the Primark discount-clothing chain also raised its dividend.
The FTSE 100 Index (UKX) rose 24.14 points, or 0.4 percent, to 6,304.76 at 9:09 a.m. in London. The equity benchmark lost 1.5 percent last week as economic data from the U.S. to China and Germany missed forecasts. It has still climbed 6.9 percent this year. The broader FTSE All-Share Index also gained 0.4 percent today, while Ireland’s ISEQ Index advanced 0.6 percent.
In China, the preliminary reading for a purchasing managers’ index released by HSBC Holdings Plc and Markit Economics was 50.5 in April. That missed the 51.5 median estimate of economists in a Bloomberg survey. Figures greater than 50 mean that manufacturing activity increased.
ARM surged 7.4 percent to 933 pence, its biggest gain since Feb. 5, after the designer of chips for Apple Inc.’s iPad and iPhone said that first-quarter revenue rose 29 percent to 170.3 million pounds ($259 million). That exceeded the 160 million- pound average estimate of analysts in a Bloomberg survey.
AB Foods gained 1.8 percent to 1,884 pence after reporting first-half revenue of 6.33 billion pounds, beating the 6.15 billion-pound average analyst estimate. The British owner of Twinings tea said first-half pretax profit rose 26 percent to 415 million pounds. The company increased its interim dividend by 10 percent to 9.35 pence a share.
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