FTSE close: Barclays, RBS, Lloyds up, Standard down

By This Is Money
Updated:

 

17.15 (close)

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The FTSE 100 Index rose 13 points to 5807.96 as positive employment data bolstered earlier gains in the session and raised hopes for the global economic recovery.

The US Department of Labor revealed benefit claims dropped last week to 421,000, the second-lowest level this year.

The Bank of England's widely-expected decision to leave interest rates unchanged at 0.5% and quantitative easing at £200bn had little impact on the stock market.

But the move prompted a drop in the pound against the euro, at 1.19, and the dollar, at 1.57.

Barclays moved ahead 11.9p to 276p, while part-nationalised banks Royal Bank of Scotland and Lloyds lifted 1.3p to 42.3p and 0.6p to 68.3p respectively.

Standard Chartered bucked the trend and slipped more than 4% as the bank confirmed its net interest margin had eased and that cost growth was likely to outpace revenue increases.

Shares were down 68p to 1810p despite Standard reassuring investors it was on track to achieve record results in 2010.

Investors were also focused on the latest house price data from Halifax.

The lending giant said property prices fell 0.1% during November, but added there were signs the housing market was stabilising - providing a boost to housebuilding stocks.

Bellway rose 7% or 46p to 662p, Persimmon lifted 17.1p to 427.4 and Barratt Developments added 2.3p to 89p in the FTSE 250.

The sector had already been buoyed by good news earlier this week from Bellway, which said buyer confidence was returning after the spending review.

Equipment hire group Ashtead was top of the FTSE 250 risers after it increased its full-year profit forecast on the back of higher US profits.

The firm's shares rose 10%, up 14.3p to 158p, after it said full-year results would beat its own expectations following a 41% hike in interim profits.

Elsewhere, games and music retailer HMV slumped 17% or 7.3p to 36.5p after reporting widening half-year losses and slashing its dividend.

It also said trading had been hit by the snow at the start of its all-important Christmas trading period.

Imperial Leather maker PZ Cussons was also in the red - down 7.5p to 385.5p - after an update revealed its profits were only marginally up year-on-year and revenues were broadly flat.

Moss Bros was enjoying better fortunes as shares rose 4% thanks to an 8.3% rise in recent like-for-like sales. The menswear retailer saw shares lift 1p to 25p.

The biggest Footsie risers were Barclays up 11.9p at 276p, Cobham ahead 7.2p at 203.6p, BG Group up 46p at 1333.5p and Royal Bank of Scotland ahead 1.4p at 42.3p.

The biggest Footsie fallers were Smith & Nephew down 26p at 636p, Standard Chartered off 68p at 1810p, Invensys down 11.6p at 333.7p and Weir off 59p at 1756p.

15.50: The Dow Jones is trading moderately lower, down 20.96 points at 11351.52, despite better than expected weekly US jobless figures.

The Footsie remains in positive territory, up 18.70 at 5,813.23.

The Bank of England's anticipated decision to leave interest rates on hold at 0.5% and quantitative easing at £200bn had little impact.

13.00:

A lunchtime update - the FTSE 100 is 16.7 points higher at 5811.3.

Banks have been among the risers with Barclays up 7.3p to 271.5p and part-nationalised Royal Bank of Scotland up 1.3p to 42.3p.

Some more firms reporting today - Imperial Leather maker PZ Cussons was in the red - down 8.2p to 384.8p - after an update revealing profits marginally up year-on-year and revenues broadly flat.

Moss Bros was enjoying better fortunes as shares rose 2% thanks to news of a 8.3% rise in recent like-for-like sales. The menswear retailer saw shares lift 0.5p to 24.5p.

10.45:

We have more on HMV Group, which has seen its shares plunge nearly 25%, or 10.75p, to 33p today. The music and games retailer admitted the start of its all-important Christmas trading period was impacted by the recent snowy weather.

But Christmas savings and vouchers firm Park Group said it had seen a rise in prudent people putting money aside for the festive season, sending its shares up 1p to 31p.

Diageo's stock is 1p higher at 1,159p following speculation it might acquire some of America's most famous whiskey labels as part of a possible £6bn bid for drinks giant Fortune Brands. The Footsie is up 13.55 points at 5,808.08.

10.00:

Hopes that the extension of US tax cuts will boost consumer confidence are continuing to buoy global stock markets, including the FTSE 100.

The blue chip index rose 11.81 points to 5,806.34 this morning following overnight gains in the US and Asia.

Banks were among the risers, with Royal Bank of Scotland adding 1.29p to hit 42.27p and Barclays up 6.5p at 270.65p. But Standard Chartered shed 2% or 46p to 1832p despite forecasting record results in 2010.

On the domestic front, investors are waiting for the Bank of England's monthly decision on interest rates at noon today. The Bank is expected to keep rates at 0.5%.

Housebuilders were lifted after Halifax issued an update on property prices. It signalled that the housing market was stabilising, although prices fell 0.1% in November.

Persimmon rose 7% or 30.8p to 44.1p, Barratt Developments added 3.9p to 90.6p and Taylor Wimpey gained 1.1p to 29.9p.

The sector had already been buoyed by good news earlier this week from Bellway, which said buyer confidence was returning after the spending review. Bellway was up 23p at 639p today.

Elsewhere, games and music retailer HMV slumped 21% or 9p to 34.8p after reporting widening half-year losses and slashing its dividend.

Electronic components distributor Premier Farnell saw its shares fall 17.40p to 285.6p despite a strong rise in pre-tax profits.

But Rank Group added 1.1p to 130p after it gave an upbeat forecast on earnings in 2010.

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