By Sara Sjolin, MarketWatch
LONDON (MarketWatch) -- U.K.'s benchmark stock index broke a
five-day losing streak on Friday, as BP PLC rose after announcing a
share-buyback and AstraZeneca PLC extended gains on the back of
recent restructuring efforts.
The FTSE 100 index gained 0.1% to close at 6,392.76, although
not enough put pull it into positive territory for the week. The
index dropped 1.5% compared with last Friday.
Helping lift the index, shares of BP PLC (BP) rose 1.9%. The oil
major said it plans to buy back $8 billion of its own shares to
return its 2003 investment in the joint venture TNK-BP to
shareholders.
Also on the rise, shares of AstraZeneca PLC (AZN) rose 3.3%,
extending gains from Thursday when the drug maker announced plans
to cut another 2,300 jobs.
BT Group PLC added 3.9% to 2.77 pounds ($4.21), as Nomura lifted
the telecom firm's price target to GBP3.60 from GBP2.90.
"Regulatory rhetoric is turning positive for all of Europe's
network owners, but the benefits should prove more tangible for
fixed networks and highly significant for BT, in our view," said
James Britton, analyst at Nomura, in a note.
"We think positive news flow from BT's imminent restructuring
plan, confirmation of the [European Commission's] broadband plan
and a solid launch of BT Sport (against low expectations) will
override noise on union wage negotiations and the widening of the
pension deficit," he added.
Most stocks in London, however, closed in red territory as all
eyes were fixed on Cyprus, where lawmakers tried to come up with a
bailout proposal to save the country from a financial meltdown.
Media reports said political leaders were planning to meet around 5
p.m. London time, or 1 p.m. Eastern. Read: What will actually
happen if Cyprus deal fails
Euro-zone finance ministers, also referred to as the Eurogroup,
said after a conference call late Thursday that it was ready to
discuss a new proposal from Cyprus, which it expects to be ready
"as rapidly as possible."
Cyprus on Thursday was presented with a deadline: The European
Central Bank warned that it would cut off emergency help if no
agreement is reached with the European Union and International
Monetary Fund by Monday.
Banks declined, with Royal Bank of Scotland Group PLC (RBS) off
2.4%, Barclays PLC 0.9% lower and Lloyds Banking Group PLC (LYG)
down 0.8%.
Among notable movers in London, mining firms posted some of the
biggest losses as metals prices were mixed.
Shares of Eurasian Natural Resources Corp. fell 3.1%, BHP
Billiton PLC (BHP) lost 1.3% and Rio Tinto PLC (RIO) fell 1.1%.
Also on the decline, shares of Petrofac Ltd. shaved off 3.7% as
HSBC cut the oil-services firm to underweight from neutral.
Outside the main U.K. index, shares of luxury-goods maker
Mulberry Group PLC tanked 17%, after it warned that revenue and
profit before tax for the year ending March 31 will be below market
expectations due to weak post-Christmas trading.
Peer firm Burberry Group PLC (BURBY) slid 4.1%.
Subscribe to WSJ: http://online.wsj.com?mod=djnwires