UK Market News

LONDON (ShareCast) - London has a bit of catching up to do after Wall Street’s strong performance yesterday which was driven by heavy demand for financials, on the back of a positive research note from Goldman Sachs (NYSE: GS - news) .

City sources expect the Footsie (news) index to open with a triple digit gain.

Diversified miner Xstrata (LSE: XTA.L - news) increased production of most the commodities it produces in the first quarter despite lower prices.

Platinum production climbed by 17% from the same period the previous year to 32,985 ounces, despite the average price of the precious metal falling to $1,023 an ounce from $1,892. Total consolidated coal production increased by 1.4m tonnes, or 7.7%, to 19.9m tonnes, due to the inclusion of production from the newly acquired operations, which contributed 2.4m tonnes.

Online gaming group 888 posted a 4% fall in operating income between the final quarter of last year and the first quarter of this year due to a decline in business-to-customer income. The decline, which brought total operating income down to $57m, was due to disappointing trading in March, the firm said.

Volatile markets took their toll on fund manager Aberdeen Asset in its latest half-year, with profits, revenues and assets under management all down sharply.

Revenue for the six months to March fell to £192.2m from £201.5m. Profits dropped from £32.5m to £17.9m after one-offs and write-downs, while assets managed fell from £107.3bn to £96.3bn. New business declined by £8.5bn over the interim period.

A trend towards grow your own vegetables has given garden and horticultural products supplier Wm Sinclair a first half boost. Trading for the six months to 31 March 2009 was in line with the company's forecasts with strong sales during March, it said.

Revenue growth at data centre operator Telecity this year is matching that seen last year and running ahead of expectations.. ‘Trading is strong right across Telecity Group (LSE: TCY.L - news) 's geographic markets, with every location contributing to group revenue growth that is ahead of management's previous expectations,’ the company said, adding that the growth in revenues is driving strong gains in operating profit.

Contractor Kier has been selected as one of the three members forming the East Midlands Property Alliance (EMPA) Intermediate Projects Partnering Framework. The £275m four-year framework starts with immediate effect and will cover the procurement of new build and refurbishment projects valued between £2m and £7.5m in the East Midlands.

High levels of repeat business has boosted market researcher Research Now (LSE: RNOW.L - news) 's confidence over the current year.

First half revenues will be approximately £23.5m, up 23% from 2008's £19.1m with all regions ahead. Underlying revenue growth was 14%. Gross profit rose by 28% to £18.3m with operating profits up 40% to approximately £3.8m.