Shell helps fuel London market rise
Market heavyweights Royal Dutch Shell and British Gas owner Centrica took the spotlight today after both firms unveiled large jobs losses.
Shell was biggest riser in the top flight as investors backed its cost-cutting plans to offset plunging oil prices, including 6,500 job losses this year.
Rolls-Royce was among a raft of blue chips stocks moving higher in another busy session for corporate earnings, the FTSE 100 Index added 37.9 points to 6668.9.
France’s Cac 40 edged up 0.2%, while Germany’s DAX rose 0.3%.
The US economy rebounded after a harsh winter in the second quarter with gross domestic product growing at a 2.3% annual rate.
However, the US market was subdued by uncertainty over whether the Federal Reserve was planning a rate hike in September, or later in December. The Dow Jones Industrial Average was down 0.2% at the close of the London market.
Sterling was flat against the US dollar at just under 1.56, with the pound a cent up against the euro at just under 1.43.
Shell lifted almost 5% or 84p at 1861p despite posting second quarter results showing a 35% fall in earnings to $3.36bn.
This helped rival BP add 2.4p to 401p.
Engine maker Rolls-Royce lifted more than 2%, or 19p to 749.5p as it reported a 32% slump in profits for the first half of the year, but said it remained on track to meet its full year guidance.
Underlying profit before tax was £439m, compared to £646m a year earlier. Revenue was also down 3% at £6.3bn.
Royal Bank of Scotland (RBS) lost 10.8p to 342.4p, despite figures showing an unexpected second quarter profit of £293m overshadowed its overall half-year loss of £153m.
The taxpayer-backed lender took a £1.3bn hit for bank scandal charges and warned of more financial pain to come as it edges towards a settlement with the US over allegations it misled investors on mortgage-backed securities sold by the group.
Centrica was the second biggest loser on the top flight, after it announced plans to cut 6,000 jobs to save £750m over five years. The stock fell 3%, or 8.6p at 266.6p.
British Gas profits were £528 million for the first half of the year, more than it made in the whole of 2014, but Centrica’s overall adjusted operating profits fell 3% to £1bn.
BT shares lost ground despite the telecoms giant posting a 9% rise in pre-tax profits to £694m for the first quarter as it reported revenues slightly below market expectations.
Shares fell 1%, or 5.6p to 468p.
The biggest risers in the FTSE 100 Index were Royal Dutch Shell up 84p at 1861p, Intercontinental Hotels Group up 120p at 2743p, BG Group up 39.5p at 1079.5p and AstraZeneca up 128.5p at 4319.5p.
The biggest fallers in the FTSE 100 Index were Babcock International down 53.5p at 985.5p, Centrica down 8.6p at 266.6p, Royal Bank of Scotland down 10.8p at 342.4p and easyJet down 39p at 1644p.
