HSBC leads London market higher
Tuesday November 10 2009
Banks were back in the spotlight as HSBC and Barclays gave updates and Lloyds Banking Group announced plans to cut 5,000 jobs.
Shares in Barclays and HSBC saw contrasting fortunes despite solid trading, while part-nationalised Lloyds was flat after news of the latest cutbacks.
The wider FTSE 100 Index maintained its positive start to the week - adding a further 9.1 points to 5244.2 by the mid-session - although further progress was checked as futures markets signalled a lower opening on Wall Street.
HSBC led the London market higher, gaining 4% or 28p to 720.2p after it reported an improved trend on bad debts and said results were "significantly ahead" in the quarter to September 30. Barclays also delivered a better underlying performance but shares dropped 4% or 14.1p to 328.75p as analysts said trading in its investment banking arm was slightly weaker than expected.
The Footsie clung to positive territory despite a near-4% slide for Vodafone after the mobile phone giant warned of intense pressure in its key Indian market. Shares fell 5.1p to 132.85p as results for the half year were in line with expectations, helped by earlier-than-expected cost savings of £1 billion.
One of the biggest gains in the top flight came from Imperial Tobacco after the JPS maker announced the appointment of chief operating officer Alison Cooper as replacement for long-time chief executive Gareth Davis. The company, which posted a 39% rise in annual profits to £2.2 billion, saw shares climb 64p to 1892p, a gain of 4%.
Meanwhile, orthopaedics and medical instruments firm Smith & Nephew was also a prominent Footsie riser, adding 11p to 599p as Goldman Sachs lifted its target price on hopes for improving conditions in US markets. The leading top-flight faller was gold mining firm Randgold Resources, which fell 233p to 4546p or 5% after disappointing with third-quarter results. Numis brokers slapped a sell rating on the stock.
In the FTSE 250 Index, directories firm Yell surrendered a promising start seen after it announced another landmark in its balance sheet restructuring.
It now plans to raise £660 million from investors, more than the £500 million signalled last week, but shares were 0.7p lower at 47.3p after initially rising by more than 3%. Industrial products firm Cookson led the second-tier risers board after it said it expected profits for this year to be at the upper end of market forecasts. Shares jumped 9% or 36.2p to 429.8p.
Press Association
