By Sara Sjolin, MarketWatch
LONDON (MarketWatch) -- U.K. stocks aimed at closing at the
highest level since the fall of 2007 on Friday, with BT Group PLC
and TUI Travel PLC climbing after well-received earnings
reports.
The FTSE 100 index gained 0.4%, on track for a seventh straight
day of gains.
Among biggest advancers, shares of BT Group PLC jumped 8.9%,
after the telecommunications firm lifted dividends 14% after
posting better-than-expected fourth-quarter results. Additionally,
Bank of America Merrill Lynch upgraded the firm to buy from
neutral.
"BT now looks to be within striking distance of its ambition to
return to top line growth. With the story reliant on cost cutting
for the past few years, a return to growth (which is enabled by
investment paid for by efficiency savings) could lead to a
re-rating by the market in our view," the analysts said.
TUI Travel PLC put on 1.7%, after the travel company narrowed
its fiscal first-half pretax loss and raised dividends.
Banks were also on the rise in London, with shares of
heavyweight HSBC Holdings PLC (HBC) up 0.8% and Barclays PLC (BCS)
0.6% higher.
On the data front in the U.K., trade data for march showed the
country's trade deficit narrowed to 3.1 billion pounds in March
($4.78 billion) from GBP3.4 billion in February.
"Export growth has been boosted by the weakness of sterling.
Although the pound has risen recentlycompared witho the 20-month
low seen in March, it remains around 25% below its precrisis peak
on a trade-weighted basis and continued to act as a driver of
rising overseas sales in April," said Chris Williamson, chief
economist at Markit, in a note.
On a more downbeat note, shares of International Consolidated
Airlines Group SA dropped 2.6%, after the company reported a
first-quarter operating loss, hurt by restructuring charges for its
Iberia unit.
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