FTSE 100 index up 0.8%; Compass Group, Capita shares decline
By Sarah Turner, MarketWatch
LONDON (MarketWatch) -- British shares edged higher Thursday amid contrasting performances for utility firms and miners, as investors also eyed earnings from companies such as Compass Group and Capita.
The U.K. FTSE 100 index (UK:UKX 4,551, +56.96, +1.27%) traded up 0.8% at 4,529.32, rising for the ninth session in a row.
Mineral extractors were higher, with shares of Lonmin (UK:LMI 1,180, +44.00, +3.87%) up 4.8%. The group said it still expects to achieve sales for the fiscal year of between 680,000 and 700,000 ounces of platinum.
Banks were also firm, with HSBC Holdings (UK:HSBA 572.25, +16.55, +2.98%) (HBC 47.31, +1.57, +3.43%) up 2.4% and Standard Chartered (UK:STAN 1,314, +49.00, +3.88%) shares up 2.6%.
Among British companies reporting earnings on Thursday, caterer Compass Group (UK:CPG 329.00, -23.75, -6.73%) slid more than 6%.
The company reported that in the first nine months of fiscal 2009, revenue growth on a constant-currency basis was 1.8% and organic revenue grew 0.8%. This marked a slowdown from May, when the firm reported first-half organic-revenue growth of 2.6%.
For the full year, revenue growth on a constant-currency basis is expected to be around 1% and organic revenue is expected to be broadly flat, the firm said.
Meanwhile, slowing growth was also a theme for analysts looking at the results of outsourcing firm Capita Group (UK:CPI 691.00, -22.50, -3.16%) , down 3.1%.
It said that its first-half net income rose to 98.7 million pounds from 84.2 million pounds in the year-earlier period. Sales climbed to 1.3 billion pounds from 1.2 billion pounds.
"Strong growth in the first half was as expected and the outlook remains positive. However, the key for investors is the slowing rate of organic growth which means there are unlikely to be upgrades," said analysts at Numis Securities.
Utility firms were weak, with Severn Trent (UK:SVT 1,029, -84.00, -7.55%) shares down 7.1% and United Utilities (UK:UU. 476.50, -25.75, -5.12%) shares down 5%.
Water regulator Ofwat Thursday released proposals that would see average household water and sewerage bills cut by around 4% by 2015.
Outside the top index, shares of bus and train operator National Express Group (UK:NEX 323.25, +13.00, +4.19%) climbed 4.1%.
The firm has received an approach in connection with a possible offer from a third party "whose intentions are not yet known."
The firm made the statement while also saying that rival FirstGroup (UK:FGP 347.50, +2.75, +0.80%) , which approached National Express about a merger at the end of June, won't make an offer for the firm. FirstGroup shares rose 0.7%.
