FTSE Close: Schroders & Barclays up; Rolls-Royce down

By Ed Monk for Thisismoney.co.uk
Updated:

 

17.05 (close)

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Flat start: Investors will balance economy fears with corporate news today.

London's FTSE 100 Index made further advances today thanks to a raft of well-received updates from the likes of Barclays and Schroders.

The Footsie closed 25.2 points higher at 5875.2 as market heavyweights gained ground.

The top tier reached the 5900 level at one stage, but pulled back after a mixed opening on Wall Street's Dow Jones Industrial Average.

In currency news, the pound eased back after recent strength. Sterling fell to 1.60 US dollars and 1.16 euros.

Banking giant Barclays was prominent on the risers board, up 4% or 11.4p to 297p, after better-than-expected third quarter results as lower bad debts helped it offset a fall in profits at its investment banking division.

Comments from the bank also appeared to ease concerns that it will have to raise additional capital due to new regulatory requirements.

Investment firm Schroders soared to the top of the London market, up 87p at 1667p, after posting pre-tax profits of £282m in the first nine months of its financial year, while gold giant Randgold Resources followed with a gain of 275p to 6265p after posting third quarter pre-tax profits of $31.7m (£19m).

Embattled blue chip stock Rolls-Royce failed to maintain its shares fightback today, slipping 0.5p to 606.5p in late session trading.

The group - under pressure after the failure of one of its engines on a Qantas superjumbo last week - had initially been boosted by news of an order in China worth $1.2bn (£743m).

Rolls-Royce gained 3% last night after it released a statement saying it was close to finding the cause of its engine failure that caused the Qantas flight to make an emergency landing.

Mobile phone group Vodafone also lost earlier gains, down 1p to 174p. The market had been cheered earlier by an upgrade of its full-year earnings guidance due to revenues growth across all its regions, but shares lost momentum.

Marks & Spencer shares dropped 2%, or 7.2p to 406p after investors were left underwhelmed by recently appointed chief executive Marc Bolland's strategy of "evolution not revolution".

This overshadowed the retail chain's 17% rise in half-year profits to £348.6m for the 26 weeks to October 2.

Primark owner Associated British Foods, which also published results today, recovered from earlier falls to stand 34p higher at 1107p.

Pre-tax profits in the year to September rose 26% on an underlying basis to £825m - beating analyst expectations.

However, AB Foods reiterated that it expects tighter margins at its discount clothing chain Primark next year due to higher costs and increased VAT.

Yell led falls in the second tier after disappointing half-year results, which led to broker downgrades. Shares in the directories group plunged 21%, down 3.2p to 12.4p.

The biggest Footsie share risers were Schroders ahead 87p to 1667p, Randgold Resources up 275p to 6265p, Barclays up 11.4p to 297p and Associated British Foods up 34p to 1107p.

The biggest Footsie fallers were InterContinental Hotels down 62p to 1140p, G4S off 5.3p to 253.6p, Prudential down 12p to 630.5p and Amec off 20p to 1114p.

15.45: With the close in sight, the FTSE is 38.50 points higher at 5888.53.

Gold is a yet another new high - $1,421. Read more on that here.

13.45:

The Footsie has hung on to this morning's gains and is 44.55 points higher at 5894.51.

Those gains may be tested after Wall Street opens - the futures markets have the Dow Jones falling slightly.

12.45:

The Footsie is 48.6 points ahead on 5898.6 - up nearly 1%.

Under-pressure fund manager Gartmore steadied in the FTSE 250 Index, up 1.4p to 108.4p following a 15% tumble yesterday on news of another departure of one of its star managers.

It was Yell's turn to lead the falls in the second tier today after disappointing half-year results, which led to broker downgrades. Shares in the directories group plunged more than 17%, down 2.8p to 12.8p.

12.00: A noon update - The FTSE 100 is 48.26 points higher at 5898.22.

In corporate news today, Barclays saw its third-quarter profits slashed by 75% today after its investment banking arm was forced to take a £947m charge on its own credit. Read more.

Marks & Spencer boss Marc Bolland has announced plans to push the company's own brand more aggressively as part of a major investment spree. Read more.

Vodafone stock lifted slightly as the firm raised its full-year outlook and said it would sell its remaining share of Vodafone Japan to Softbank for £3.1bn($5bn). Read more.

Primark owner Associated British Foods beat forecasts with a 25% rise in full-year earnings but warned sharp hikes in cotton prices will hit margins at the discount fashion chain. Read more.

10.30:

The FTSE 100 has been lifted by commodity gains and solid results from index giants Barclays and Vodafone, with Rolls-Royce rebounding after heavy falls.

The blue chip index moved higher in morning trading, gaining 33.43 points to 5883.39.

The top of the leaderboard was dominated by natural resources and commodities stocks. Randgold Resources led the way, up 210p, or 3.5% at 6,200p The gold specialist doubled its third quarter profit thanks to a succession of gold price highs.

Gold moved above $1,400 an ounce yesterday.

Miners are also having a god morning. Antofagasta is 39p better off at 1,467p, Eurasian Natural Resources is 28p up at 1,014p, Fresnillo is 36p up at 1,446p and Rio Tinto is 109.5p better at 4,440.5p.

Barclays and Vodafone gave a helping hand to the London market today as investors cheered solid results from the blue-chip pair.

Barclays was 43p up at 1623p, after better-than-expected third quarter results as lower bad debts helped it offset a fall in profits at its investment banking division.

Vodafone shares lifted 2.35p to 177.35p, a rise of 1%, after it upgraded its full-year earnings guidance due to revenues growth across all its regions. The mobile phone giant also set out its strategy for capitalising on booming consumer demand for smartphones.

In a busy day for corporate results, Marks & Spencer shares dropped 2%, or 7.2p to 406p, after chief executive Marc Bolland's strategy of 'evolution not revolution' underwhelmed investors.

Primark owner Associated British Foods, which published results today, fell 11p to 1062p.

Other significant movers included Rolls-Royce as the manufacturing giant continued the rebound seen after yesterday's statement that it was making progress on finding the cause of the engine failure that forced a Qantas jet to make an emergency landing. Shares were 10.5p higher at 617.5p.

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