By Sara Sjolin, MarketWatch
LONDON (MarketWatch) -- U.K.'s benchmark stock index defied weak
manufacturing data on Friday, with shares of Old Mutual PLC leading
stocks higher after a well-received earnings report and British
American Tobacco PLC higher after a broker recommendation.
The FTSE 100 index rose 0.3% to 6,378.60, and closed 0.7% higher
on the week.
Among stocks on the rise in London, shares of Old Mutual gained
4.4%. The financial group posted an increase in 2012 profit and set
aside 5 billion rand ($561.8 million) to invest in Africa over the
next three to five years. See: Old Mutual posts rise in profit,
focus on Africa
British American Tobacco (BTI) added 2.1% to 35.08 pounds
($52.66), as Credit Suisse lifted the firm's target price to GBP36
from GBP33.80 and reiterated its outperform rating.
Hammerson PLC picked up 2.5%. The real-estate company said it
would raise full-year dividends to 10 pence from 9.3 pence in
2011.
On a more downbeat note in London, shares of Lloyds Banking
Group PLC (LYG) dropped 2.2% after the bank posted a loss for 2012.
The result was hit by extra provisions in the fourth quarter to
cover potential claims from people who were wrongly sold insurance
products, known as PPI. See: Lloyds hit by further PPI charges
Other banks were also lower: Royal Bank of Scotland Group PLC
(RBS) by 3.1%, Barclays PLC(BCS) by 1.2% and sector heavyweight
HSBC Holdings PLC (HBC) by 0.5%.
Mining firms were also on the decline in London, after fresh
data showed the Chinese manufacturing sector expanded at a slower
pace in February.
The government-sponsored version of the manufacturing Purchasing
managers' index came in at 50.1, only marginally ahead of the
50-point threshold that signals an expansion. The figure marked a
decline from January's 50.4-point level and missed expectations for
50.5 in a Dow Jones Newswires survey. See: China manufacturing
grows marginally, surveys show
Shares of Kazakhmys PLC fell 4.7%, Rio Tinto PLC (RIO) dropped
2.8% and Anglo American PLC (AAUKY) shaved off 1.1%. Metals prices
were mostly lower.
Glencore International PLC (GLCNF) erased 2.7%, after the
commodities titan said it won't be able to complete its proposed
merger with mining company Xstrata PLC by March 15, as intended.
Xstrata shares fell 3.1%. See: Glencore-Xstrata merger won't be
complete by March
On the data front in the U.K., the Markit/CIPS Manufacturing PMI
dropped to 47.9 in February from January's 50.5, slipping below the
50 mark, which separates expansion from contraction. Analysts
polled by FactSet expected a reading of 51.
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