U.K. Stocks Climb for a Sixth Day; Marks & Spencer Leads Gains

By Sarah Thompson

Nov. 4 (Bloomberg) -- U.K. stocks advanced for a sixth day, led by retailers and airlines after Marks & Spencer Group Plc reported first-half net income ahead of analysts' estimates and crude oil declined.

Marks & Spencer, the country's largest clothes retailer, jumped 6.9 percent. British Airways Plc, Europe's third-largest airline, and EasyJet Plc led shares of airline companies higher.

The FTSE 100 Index gained 67.91, or 1.5 percent, to 4,511.19 at 10:56 a.m. in London. The FTSE All-Share Index increased 1.7 percent and Ireland's ISEQ Index added 3 percent.

``M&S' numbers are a relief to investors,'' said Espen Furnes, an Oslo-based fund manager at Storebrand Asset Management, which has the equivalent of $48 billion. ``The read- across to the U.K. economy is perhaps that the slowdown isn't accelerating any more.''

``The massive fall in oil prices we've seen since its peak in July has reversed a lot of the problems the airline sector suffered in the first half of the year,'' Furnes added.

M&S climbed 6.9 percent to 236.75 pence. First-half net income fell to 223.2 million pounds ($350 million), or 14.2 pence a share, in the six months ended Sept. 27, from 393.2 million pounds, or 23.2 pence, a year earlier. That beat the 211 million- pound median estimate of six analysts surveyed by Bloomberg News.

Sainsbury Plc, the third-largest U.K. food retailer, added 2.9 percent to 287.5 pence.

British Airways increased 4.7 percent to 146.2 pence. EasyJet, Europe's second-biggest discount airline, gained 6.5 percent to 313.75 pence. Ryanair Holdings Plc, the region's biggest discount airline, added 6.7 percent to 3.02 euros.

Crude Oil Declines

Crude oil for December delivery fell as much as $1.66, or 2.6 percent, to $62.25 a barrel on the New York Mercantile Exchange. It was trading at $62.25 a barrel at 9:25 a.m. in London. Prices are down 33 percent from a year ago.

Rio Tinto, fending off a $76.8 billion hostile bid from BHP Billiton Ltd., lost 2.6 percent to 2,825 pence. Copper for delivery in three months fell $78, or 1.9 percent, to $4,012 a ton as of 9:35 a.m. local time. The contract has fallen 40 percent this year, heading for the first annual drop since 2001.

Royal Bank of Scotland Group Plc, waiting to take up the U.K.'s biggest bank bailout, lost 6.4 percent to 61 pence. The lender wrote down 1.4 billion pounds ($2.2 billion) of assets in the third quarter and said it may post a full-year loss.

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

U.K. companies:

Balfour Beatty Plc (BBY LN) gained 10.5 pence, or 3.9 percent, to 278.25. Britain's biggest builder said business levels since the end of June were ``in line'' with internal targets as orders continued to increase, securing long-term income.

BG Group Plc (BG/ LN) added 19.5 pence, or 2.2 percent, to 923.5. The U.K.'s third-largest gas producer said third-quarter profit more than doubled on higher prices for liquefied natural gas.

Croda International Plc (CRDA LN) added 15 pence, or 2.8 percent, to 543. The U.K. maker of natural-based chemicals for clients such as Procter & Gamble Co. said third-quarter profit rose 73 percent on ``strong growth'' at its personal and crop care businesses.

Parity Group Plc (PTY LN) slumped 2.5 pence, or 28 percent, to 6.5. The European provider of computer-services to cereal- maker Kelloggs Co. fell the most in two years in London trading after saying ``difficult'' business conditions may continue into next year.

Punch Taverns Plc (PUB LN) lost 16.25 pence, or 8.9 percent, to 167.25. The U.K.'s largest pub owner posted an annual loss as Britain's slumping economy forced the company to write down the value of its properties.

To contact the reporter on this story: Sarah Thompson in London at sthompson17@bloomberg.net.