U.K. Stocks Fluctuate; Banks Rally as Bunzl, Experian Retreat

By Alexis Xydias

April 16 (Bloomberg) -- U.K. stocks swung between gains and losses as a rally in banks was overshadowed by disappointing sales updates from Bunzl Plc and Experian Plc.

Barclays Plc, Britain’s third-largest bank, rose 6.2 percent after President Robert Diamond said better-than- estimated earnings in the industry last quarter aren’t a “one- off” phenomenon. Bunzl, the region’s biggest supplier of vending machines, and Experian lost more than 3 percent.

The FTSE 100 Index increased 7.98, or 0.2 percent, to 3,976.38 as of 9:16 a.m. in London. The FTSE All-Share Index added 0.2 percent, while Ireland’s ISEQ Index climbed 0.6 percent.

“Banks are so strong almost because of bad news everywhere else,” said Simon Denham, managing director at Capital Spreads in London. “I see no impulse to push the index in any direction. I can’t get enthusiastic.”

The benchmark index has rebounded 13 percent from its low this year as the U.S. Federal Reserve’s announced plans to buy Treasuries and bonds backed by mortgages and Treasury Secretary Timothy Geithner’s pledged to finance the purchase of toxic assets.

Barclays added 6.2 percent to 209 pence, a fifth day of advances. Diamond said yesterday he is “reasonably optimistic” about the industry, and commented on earnings from banks including Goldman Sachs Group Inc. and Wells Fargo & Co.

“You have to look at which banks have improved their competitive position in this period, and in that regard I don’t think it’s a one-off,” Diamond, 57, said in an interview on Bloomberg Television.

Bunzl Slumps

Royal Bank of Scotland Group Plc rose 4 percent to 28.8 pence. Lloyds Banking Group climbed 3.8 percent to 87.3 pence.

Bunzl slumped 9.9 percent to 485 pence after third-quarter sales missed analyst estimates. Revenue in the three-month period ended March 28 grew 18 percent, Bunzl said in a Regulatory News Service statement today. Numis Securities had estimated sales would increase about 20 percent, analyst Mike Murphy said in a telephone interview today.

Experian tumbled 3.7 percent to 449.5 pence. The world’s largest credit-checking company said growth in so-called organic revenue slowed in the second half and that sales on that basis may “soften” in the first quarter of this fiscal year.

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