U.K. Stocks Advance for Second Day, Led by Wolseley and Ashtead

By Alexis Xydias

Dec. 9 (Bloomberg) -- The U.K.’s FTSE 100 Index rose for a second day, led by companies with most sales in the U.S., on expectations president-elect Barack Obama will kick-start economic growth.

Wolseley Plc, the world’s biggest distributor of plumbing gear, and Ashtead Group Plc, the second-largest equipment-rental company in the U.S., climbed more than 9 percent.

The FTSE 100 Index rose 57.19, or 1.3 percent, to 4,357.25 as of 11:23 a.m. in London, after earlier falling as much as 1.6 percent. The FTSE All-Share Index added 1.5 percent and Ireland’s ISEQ Index gained 2.1 percent.

“People are still riding this wave of speculating what Obama plans to do,” said David Jones, chief market strategist at IG Index in London. “There is hope he will be able to put a cap on how bad things can get.”

The FTSE 100 yesterday rose 6.2 percent, the most in two weeks, as investors speculated Obama’s largest infrastructure- spending package since the 1950s will limit the global economic slowdown. The stock index is trading at a monthly average of 7.77 times its members’ reported earnings, according to Bloomberg data. That is the lowest since at least 1993.

Wolseley, which gets half its sales from North America, added 9.7 percent to 380.75. Ashtead increased 14 percent, to 35.25. The company plans to cut jobs and reduce operations ahead of an expected drop in demand next year.

The following stocks also rose or fell in U.K. markets. Stock symbols are in parenthesis.

Ferrexpo Plc (FXPO LN) declined 3.25 pence, or 8.7 percent, to 34. Deutsche Bank AG downgraded shares of the producer of iron ore to “sell” from “hold.”

Imperial Energy Plc (IEC LN) climbed 100 pence, or 12 percent, to 950. Oil & Natural Gas Corp., India’s biggest exploration company, received approval from a cabinet committee to make a formal bid for Imperial Energy, a government official familiar with the offer said.

Micro Focus International Plc (MCRO LN) increased 4 pence, or 1.5 percent, to 264. The U.K. business software maker whose clients include Tesco Plc and Boeing Co. said first-half profit increased 39 percent on acquisitions and software sales.

PZ Cussons Plc (PZC LN) added 9.25 pence, or 6.5 percent, to 151. The U.K. maker of Imperial Leather soap said first-half sales and profitability met managers’ forecasts and rose from a year earlier.

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