By Carla Mozee, MarketWatch
Rio Tinto drops after shipment update
U.K. stocks advanced Tuesday, with ARM Holdings PLC and Sky PLC
gaining following financial updates, but the benchmark FTSE 100's
rise was blunted in part as shares of mining heavyweight Rio Tinto
PLC fell.
The FTSE 100 closed up 0.2% at 7,062.93, its second consecutive
rise.
The blue-chip benchmark had been up by roughly 0.8% earlier in
the session, but the heavily weighed mining group began to see
further losses. There, Rio Tinto shares were pushed 2.2% lower
after the miner said iron-ore shipments fell 12% in the first
quarter
(http://www.marketwatch.com/story/rio-tinto-iron-ore-shipments-set-to-rise-2015-04-21)
to 72.5 million metric tons, from the previous quarter.
But Rio Tinto, the world's second-largest producer of iron ore,
said it's still aiming to meet a previously announced full-year
target of up to 350 million tons.
Iron ore giant BHP Billiton PLC also saw its stock fall, ending
lower by 1.3%, and Anglo American PLC fell 2%. Glencore PLC closed
unchanged.
The mining group on Monday surged
(http://www.marketwatch.com/story/miners-lead-gains-on-ftse-100-as-china-moves-to-stimulate-growth-2015-04-20)
after China enacted another measure aimed at revving up economic
growth. China is a major buyer of metals and other commodities.
Sky was the best performing stock in Tuesday's session as it
climbed 5%. The shares had their best day since October 2013,
according to FactSet data, after the broadcaster said operating
profit in the nine months ended March 31 rose 20% to GBP1.03
billion year-over-year. Revenue was up 5% to GBP8.45 billion. Sky
said the period was supported by growth in television subscribers
(http://www.marketwatch.com/story/sky-earnings-up-on-uk-german-subscriber-growth-2015-04-21)
and demand for new services in the U.K. and Germany.
Shares of ARM (ARMHY) jumped 3.9% after the chip designer, whose
technology is found in the majority of the world's smartphones,
said first-quarter revenue rose 22%
(http://www.marketwatch.com/story/arms-profit-lifted-by-strong-smartphone-demand-2015-04-21)
to 227.5 million pounds, higher than the consensus estimate of
GBP224 million. Net profit came in at GBP85 million, up from
GBP62.3 million a year ago.
Back to decliners, Associated British Foods shares fell 5.3%.
The sharpest percentage decline since April 2011 was triggered
after the company said it now expects a modest decline
(http://www.marketwatch.com/story/associated-british-foods-pretax-profit-drops-4-2015-04-21)
in adjusted per-share earnings for the full year. AB Foods, which
owns retailer Primark and sugar operations, had previously expected
a marginal decline in adjusted earnings.
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