U.K. Stocks Rise; Marks & Spencer, Compass Group Lead Gains

By Adam Haigh

March 31 (Bloomberg) -- U.K. stocks advanced for the first time in three days as Marks & Spencer Group Plc’s sales topped estimates, Compass Group Plc reported an increase in revenue and rising copper pushed mining companies higher.

Marks & Spencer, the U.K.’s biggest clothing retailer, climbed 11 percent as it reported a smaller drop in fourth- quarter sales than analysts estimated, as cheaper food and fashion offers appealed to cash-strapped Britons. Compass Group rallied 7.9 percent as sales climbed. BHP Billiton Ltd. and Anglo American Plc both gained more than 2 percent as copper rallied.

The benchmark FTSE 100 Index gained 80.49, or 2.1 percent, to 3,843.4 at 9:20 a.m. in London, bringing the gain this month to 0.3 percent. The measure has fallen 13 percent this quarter. The FTSE All-Share Index added 2 percent today and Ireland’s ISEQ Index gained 1.5 percent.

“We have had some decent company news today,” said London-based Joshua Raymond, a market strategist at City Index. “The fact that Marks & Spencer reported better than expected results is always going to help investor sentiment.”

The FTSE 100 has rallied 9.4 percent from a six-year low on March 3 as banks from Barclays Plc to Citigroup Inc. and JPMorgan Chase & Co. said they were profitable in the first two months of the year.

Marks & Spencer added 11 percent to 293.25 pence as it reported a 4.2 percent decline in revenue at U.K. stores open at least a year. That beat the 6.8 percent drop estimated by 14 analysts surveyed by Bloomberg News.

Compass Group, the biggest provider of food services to companies, hospitals and schools, gained 7.9 percent to 318.75 pence after saying so-called organic sales increased as more customers turned to outsourcing amid the worldwide recession.

BHP Billiton, the world’s largest mining company, added 3.5 percent to 1,349 pence. Anglo American, the fourth biggest diversified mining company, gained 2.5 percent to 1,108 pence.

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

Debenhams Plc (DEB LN) sank 11 percent to 48 pence. HSBC Holdings Plc is placing up to 115.8 million Debenhams shares at 40 pence to 45 pence apiece, the term sheet of the sale shows. The final price will be decided by an accelerated bookbuild.

ICAP Plc (IAP LN), the world’s largest broker of transactions between banks, climbed 6.1 percent to 289.75 pence after saying revenue for the year exceeded 1.5 billion pounds ($2.14 billion) for the first time.

To contact the reporter on this story: Adam Haigh in London at ahaigh1@bloomberg.net.