U.K. Stocks Climb; BP, Aviva, Standard Chartered Shares Rally

By Sarah Jones

Oct. 28 (Bloomberg) -- U.K. stocks rallied for the first time in three days, led by commodity producers and financial companies, after BP Plc reported higher earnings and Standard Chartered Plc said credit losses won't be ``material.''

BP jumped 8 percent after the oil company posted an 83 percent rise in profit. BHP Billiton Ltd. climbed as copper rose above $4,000 a metric ton. Standard Chartered, the U.K.'s third- biggest bank, jumped 14 percent, while Aviva Plc surged 12 percent after the insurer said its capital reserves were ``very strong.''

The FTSE 100 Index jumped 151.99, or 4 percent, to 4,004.58 at 12:10 p.m. in London, as all but 17 stocks advanced. Today's gain trimmed the gauge's loss in October to 18 percent, still the worst decline since October 1987. The FTSE All-Share Index rose 3.7 percent, while Ireland's ISEQ Index increased 2.4 percent.


BP gained 8 percent to 473 pence after the energy company said it is ``well-placed'' to cope with the financial crisis after posting third-quarter profit of $8.05 billion on record crude and higher natural-gas prices.

``The numbers have comfortably surpassed the top end of expectations,'' said Richard Hunter, head of U.K. equities at Hargreaves Lansdown Stockbrokers in London. ``The shares are an outright buy at current levels.''

Oil Stocks

Royal Dutch Shell Plc, Europe's largest oil company, increased 5.8 percent to 1,545 pence. Cairn Energy Plc increased 2.2 percent to 1,205 pence.

BHP led mining shares higher as copper rose for a second day in London on speculation that demand for the metal will strengthen in China. Nickel and Lead also gained.

The world's largest mining company increased 5.4 percent to 891.5 pence. Rio Tinto Group, the world's third-largest, added 6.5 percent to 2,388 pence. Xstrata Plc rose 5.9 percent to 751 pence.

Standard Chartered, which makes the majority of its revenue in Asia, increased 14 percent to 772.5 pence after the bank said credit losses from U.S. financial institutions won't be ``material.'' The bank said its wholesale unit has seen ``strong'' income growth and customer deposits are ``steady.''

Aviva, the U.K.'s biggest insurer by assets, gained 14 percent to 279.75 pence after saying its capital reserves are ``very strong.'' The insurer reported a 12 percent increase in life and pension sales in the first nine months of the year, helped by gains in the U.S.

The following stocks also gained or fell in the U.K. market. Stock symbols are in parentheses.

ARM Holdings Plc (ARM LN) increased 10 pence, or 12 percent, to 90.5 after the U.K. designer of chips used in mobile phones said third-quarter profit soared 38 percent to 11.8 million pounds ($18.5 million), on record sales.

BG Group Plc (BG/ LN) added 45.5 pence, or 6.9 percent, to 709.5 as crude oil rallied for the first time in three days and after the third-biggest U.K. oil and gas producer agreed to pay A$5.2 billion ($3.1 billion) for the rest of Queensland Gas Co. as it seeks to ensure the development of a planned gas export project in Australia.

Carpetright Plc (CPR LN) dropped 11.5 pence, or 2.6 percent, to 428 after the U.K.'s largest carpet retailer reported a 13 percent decline in revenue at U.K. and Irish shops open at least a year in the 25 weeks to Oct. 25. The company also said it's close to taking over a concessionaire that sells beds in 94 stores.

ICAP Plc (IAP LN) dropped 10 pence, or 3.4 percent, to 285.25 after Goldman Sachs Group Inc. added the biggest interbank broker and rival Tullett Prebon Plc (TLPR LN) to its ``sell'' list, citing competition from exchanges amid global market turmoil

Irish companies:

Ryanair Holdings Plc (RYA ID) increased 7.3 cents, or 2.9 percent, to 2.56 after Citigroup Inc. upgraded Europe's largest discount airline to ``buy'' from ``hold.''

To contact the reporter on this story: Sarah Jones in London at sjones35@bloomberg.net.