Most U.K. Stocks Rise, Led by Tullow Oil; Carpetright Retreats

By Alexis Xydias

Dec. 16 (Bloomberg) -- Most U.K. stocks advanced. Tullow Oil Plc gained more than 7 percent after the U.K. explorer made a “significant” find in Uganda.

Carpetright Plc and Kesa Electricals Plc declined after the retailers said earnings are suffering as consumers reign in spending.

The FTSE 100 Index increased 13.69, or 0.3 percent, to 4,291.25 as of 1:55 p.m. in London, having gained as much as 1.2 percent earlier. The FTSE All-Share Index rose 0.3 percent and Ireland’s ISEQ Overall Index retreated 0.6 percent.

The FTSE 100 has fallen 34 percent this year as the British economy slips into recession. The decline left the benchmark trading at 7.8 times its members’ reported earnings, near the lowest since at least 1999.

“We expect little prospect for significant near-term recovery of the global economy,” said Robert Brown, chairman of the global investment committee at London’s Watson Wyatt Investment Consulting, an advisory firm. “However, it should be borne in mind that the best buying opportunities are typically before economic stabilization and recovery are clear.”

European indexes pared gains after a report showed U.S. builders broke ground in November on the fewest new homes since record-keeping began, signaling the housing slump will extend into a fourth year.

Tullow Oil Plc rose 7.3 percent to 613 pence. Heritage Oil Ltd. jumped 8.1 percent to 238 pence, a seventh advance. Tullow Oil, the U.K. explorer with the most licenses in Africa, and partner Heritage made a “significant” find in the Buffalo-1 well in Uganda, Heritage said in a statement.

Oil Prices

Crude oil rose after Venezuela and Iran said OPEC may need to cut oil production by 2 million barrels a day at a meeting tomorrow in an effort to stop a slump in prices.

Carpetright plummeted 15 percent to 336.75 pence. The U.K.’s largest carpet retailer said earnings will be “significantly” below current estimates.

Kesa Electricals tumbled 12 percent to 89.75 pence. The owner of France’s Darty electronics stores and Britain’s Comet chain reported a first-half loss after sales of electronic goods stagnated, and said the outlook for Europe remains “very weak.”

The following stocks also rose or fell in the U.K. and Ireland. Stock symbols are in parentheses:

GoIndustry-DoveBid Plc (GOI LN) dropped 1.12 pence, or 43 percent, to 1.48. The U.K. auctioneer of used industrial machinery plummeted after saying it will miss analysts’ estimates for the full year because sales in December will fail to raise enough cash to compensate for the weak months of October and November.

HSBC Holdings Plc (HSBA LN) fell 20 pence, or 2.8 percent, to 704. The bank may seek to raise $14 billion through a stock sale or rights issue, CLSA Asia-Pacific Markets said. Bangkok- based analysts at the brokerage cut their estimate on HSBC’s Hong Kong shares, adding that the economic slowdown will hurt the business.

PartyGaming Plc (PRTY LN) added 19.5 pence, or 14 percent, to 158.25 after the gambling company said it’s still in talks with the U.S. Justice Department and it’s unlikely to include a criminal plea by the company or a director in any settlement.

To contact the reporter on this story: Alexis Xydias in London at axydias@bloomberg.net