FTSE recovers early losses
Mining and banking stocks helped London’s leading shares bounce back today from the shock of Thursday’s interest rate hike.
The FTSE 100 Index plummeted 93.7 points on the back of the Bank of England’s decision, but managed to claw back 51 points to finish the week at 5889.4.
Online gambling firm PartyGaming topped the leader board, up 10p to 120p as investors continued to shake off recent uncertainty and reacted to its €102m takeover of Gamebookers yesterday.
Mining firm Anglo American was close behind, up almost 5% – or 107p to 2330p - after posting higher first half profits and announcing a share buy-back scheme.
The company’s gains were reflected in other top performing mining stocks with Vedanta cheering 27p to 1295p and Kazakhmys boosted 30p to 1244p.
Banks seemed to weather yesterday’s rate rise with investors instead focusing on positive results as Royal Bank of Scotland was up 17p to 1736p after posting a 23% rise in half-year profits to £4.51 billion.
Barclays, which achieved a 37% increase in pre-tax profits to £3.67bn (€5.43bn) yesterday, was up 16.5p to 635.5p, while Lloyds TSB lifted 7p to 525p and Halifax Bank of Scotland grew 15p to 974p.
Northern Rock also beat off any negative impact on lending to see its stock rise 36.5p to 1125p.
The day’s losers were led by BA, which finished 13.5p down at 375.5p, despite first quarter pre-tax profits of £195 (€288.75m) being at the top end of market expectations.
BA also upgraded its revenues guidance for the year, but added that fuel costs could be up £600m (€888.51m) higher on a year ago and that the second half of the year was likely to be more challenging.
Beleaguered ITV was boosted yesterday following speculation of a management change, but its stock fell almost 2% – by 2.5p to 101.75p – with one analyst suggesting the move would not be enough to switch the channel’s fortunes.
Marks & Spencer was another faller, down half a penny to 579.5p, although most of the retail sector steadied after the interest rate rise knocked sentiment yesterday.
Outside the top flight, pub and restaurant owner Mitchells & Butlers lifted 19.5p to 544p amid speculation Enterprise Inns is gearing up to launch a bid for the company.
Bakery chain Greggs rose 200p to 3950p, as it revealed shop closures and job losses in order to tackle the disappointing performance of its Bakers Oven business in northern England and Scotland.
Budget airline easyJet also lost ground – 8p to 431.5p – after revealing it was thinking about a possible franchise deal with Saudi-based National Air Services to use the firm’s brand around the Arabian Gulf.
The top risers were PartyGaming up 10p to 120p, Anglo American ahead 107p to 2330p, Northern Rock up 36.5p to 1125p and Morrisons ahead 6.5p to 219.5p.
The top fallers were British Airways down 13.5p to 375.5p, ITV off 2.5p to 101.75p, Reckitt Benckiser down 29p to 2131p and Centrica off 3.25p to 292.75p.
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