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May 22, 2013, 12:27 p.m. EDT

U.K. stocks extend gains to 13-year high

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By Sara Sjolin, MarketWatch

LONDON (MarketWatch) — U.K. stocks extended gains to close at a 13-year high on Wednesday, finding support in comments from the International Monetary Fund calling for more growth in the country.

The FTSE 100 index /zigman2/quotes/210598409/delayed UK:UKX -0.36% gained 0.5% to 6,840.27, closing at the highest level since December 1999.

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The index was helped higher after the IMF said it sees signs of an uptick in growth in the U.K. It also called for new growth measures and less austerity to help the country’s economy.

“Financial policies are needed to restore the health of the banking system, to ensure that monetary policy is fully effective, and fiscal and structural policies are needed to raise expectations of incomes and returns on investment,” the IMF said in its annual check of the U.K.

“The government has shown flexibility in its fiscal program to mitigate damage to growth, but planned fiscal tightening this year will be a drag on the economy.”

The FTSE had traded in negative territory earlier in the day after the Office for National Statistics reported retail sales dropped 1.3% in April compared with March.

Additionally, minutes from the Bank of England’s Monetary Policy Committee May meeting showed the nine members voted unanimously to keep interest rates unchanged at a record low 0.5%, while three members voted in favor of increasing the bank’s asset purchases.

Gov. Mervyn King as well as Paul Fisher and David Miles preferred to increase the size of the asset-purchase program by 25 billion pounds ($38 billion) to a total of £400 billion. The votes were unchanged from the policy-setting meeting in April.

Enlarge Image
The Bank of England voted 6-3 to keep asset purchases unchanged, minutes from the latest meeting show on Wednesday.

Shares of Lloyds Banking Group PLC /zigman2/quotes/202285510/delayed UK:LLOY -1.71%   /zigman2/quotes/200709414/composite LYG -4.31%  rose 2.3%, after the bank said it expects to meet its additional capital requirements without having to issue further equity or use contingent capital securities.

Other banks were also higher, with Barclays PLC /zigman2/quotes/208409333/delayed UK:BARC -2.03%   /zigman2/quotes/206581728/composite BCS -4.74% up 3.3% and Royal Bank of Scotland Group PLC   rising 2.2%.

Miners mostly showed positive moves, as most metals prices moved higher. Antofagasta PLC /zigman2/quotes/200173667/delayed UK:ANTO -0.08%  gained 3.9%, Anglo American PLC /zigman2/quotes/201381512/delayed UK:AAL -0.66%  added 2% and BHP Billiton PLC   /zigman2/quotes/208108397/composite BHP -0.92%   /zigman2/quotes/201448516/delayed AU:BHP -1.25%  inched 1% higher.  

Bucking the positive trend, shares of Kazakhmys PLC /zigman2/quotes/208098927/delayed UK:KAZ +0.19%  dropped 6%, after UBS cut the miner to neutral from buy, citing lower possibility of a merger agreement with Eurasian Natural Resources Corp. . Shares of ENRC lost 2.3%.

Outside the major index in London, shares of Britvic PLC /zigman2/quotes/208055220/delayed UK:BVIC -1.77%  surged 11%, after the beverage firm said adjusted earnings per share rose 48% for the 28 weeks to April 14, while increasing dividends 1.9% to 5.4 pence (82 cents).

/zigman2/quotes/210598409/delayed
UK : FTSE UK
6,340.26
-22.67 -0.36%
Volume: 248,045
Nov. 27, 2020 12:00p
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/zigman2/quotes/202285510/delayed
UK : U.K.: London
36.68 p
-0.64 -1.71%
Volume: 57.34M
Nov. 27, 2020 12:00p
P/E Ratio
89.46
Dividend Yield
0.00%
Market Cap
£26.99 billion
Rev. per Employee
£635,594
loading...
/zigman2/quotes/200709414/composite
US : U.S.: NYSE
$ 2.00
-0.09 -4.31%
Volume: 6.14M
Nov. 25, 2020 7:00p
P/E Ratio
98.04
Dividend Yield
2.78%
Market Cap
$36.12 billion
Rev. per Employee
$810,852
loading...
/zigman2/quotes/208409333/delayed
UK : U.K.: London
138.24 p
-2.86 -2.03%
Volume: 16.65M
Nov. 27, 2020 12:00p
P/E Ratio
N/A
Dividend Yield
0.00%
Market Cap
£24.87 billion
Rev. per Employee
£371,819
loading...
/zigman2/quotes/206581728/composite
US : U.S.: NYSE
$ 7.64
-0.38 -4.74%
Volume: 3.34M
Nov. 25, 2020 7:00p
P/E Ratio
N/A
Dividend Yield
1.88%
Market Cap
$33.28 billion
Rev. per Employee
$474,344
loading...
/zigman2/quotes/200173667/delayed
UK : U.K.: London
1,214.50 p
-1.00 -0.08%
Volume: 162,675
Nov. 27, 2020 11:59a
P/E Ratio
45.10
Dividend Yield
0.82%
Market Cap
£11.99 billion
Rev. per Employee
N/A
loading...
/zigman2/quotes/201381512/delayed
UK : U.K.: London
2,251.50 p
-15.00 -0.66%
Volume: 523,673
Nov. 27, 2020 12:00p
P/E Ratio
16.85
Dividend Yield
2.49%
Market Cap
£28.45 billion
Rev. per Employee
N/A
loading...
/zigman2/quotes/208108397/composite
US : U.S.: NYSE
$ 57.32
-0.53 -0.92%
Volume: 1.66M
Nov. 25, 2020 7:00p
P/E Ratio
18.27
Dividend Yield
4.19%
Market Cap
$135.05 billion
Rev. per Employee
N/A
loading...
/zigman2/quotes/201448516/delayed
AU : Australia: Sydney
$ 38.72
-0.49 -1.25%
Volume: 4.92M
Nov. 27, 2020 4:10p
P/E Ratio
16.61
Dividend Yield
4.52%
Market Cap
$183.73 billion
Rev. per Employee
N/A
loading...
/zigman2/quotes/208098927/delayed
UK : U.K.: London
639.20 p
+1.20 +0.19%
Volume: 206,849
Nov. 27, 2020 11:52a
P/E Ratio
7.33
Dividend Yield
1.41%
Market Cap
£2.97 billion
Rev. per Employee
N/A
loading...
/zigman2/quotes/208055220/delayed
UK : U.K.: London
807.00 p
-14.50 -1.77%
Volume: 113,982
Nov. 27, 2020 11:59a
P/E Ratio
22.80
Dividend Yield
2.69%
Market Cap
£2.16 billion
Rev. per Employee
N/A
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Sara Sjolin is a MarketWatch reporter based in London. Follow her on Twitter @sarasjolin.

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