FTSE close: BA, RBS up
The Footsie fell off a small shelf after lunchtime when poor US non-parm payroll figures were released.
The Footsie had already been in subdued mood despite a hefty 200-point gain on Wall St overnight, which left the Dow Jones above 10,000 for the first time in two weeks.
But the news from the US Labor Department that the unemployment rate rose to an unexpectedly high 10.2% in October put the cat of economic pessimism among the trading pigeons.
The FTSE 100 index lost 50 points on the news but later recovered to close 17.1 points up at 5,142.7.
Struggling airline BA was the biggest riser in the Footsie with a 6.7% climb, despite reporting a £292m loss for the six months to the end of September - the first time the flag carrier has failed to make a profit from the busy summer flying period.The market seemed to like Chief Executive Willie Walsh's apparent victory over the unions last night, and his plans for further jobs cuts and cost savings.
The stock was also aided by BofA Merrill Lynch repeating its 'buy' rating. Shares rose 12.6p to 198.9p.
Banking stocks were in favour as investors digested a third-quarter trading statement from Royal Bank of Scotland, which was among the top blue-chip risers, up 1.85%.
Investors in the bank – which is now 84% owned by the taxpayer after receiving another £33bn in support this week - overlooked a hefty third-quarter loss of £1.53bn, 60% up on the year earlier.
RBS shares rose by 1.85p or 5.25% to stand at 37.06p.
Lloyds Banking Group put on 1.81p to 84.8p after Citigroup upgraded the stock to 'buy' from 'hold', accompanied by a massive target hike, to 104p from 37p, following the firm's withdrawal from the British government's asset protection scheme.
Barclays and HSBC - both expected to report much healthier results next week than part-nationalised RBS and Lloyds - added 4.15p to 336.5p and 13.8p to 683.3p respectively. JP Morgan lifted its target price Barclays.
Hedge fund company Man Group meanwhile cheered 4.7% or 4.7p to 359.5p as investors bought in following Thursday's better than expected numbers.
Miner Antofagasta was boosted 13.5p to 853.5p by a Citigroup upgrade to 'buy', while Vedanta Resources put on 21p to 2,263p as the same broker lifted its price target for the stock.
Europe's leading maker of replacement hips and knees Smith & Nephew fell 4p to 536p despite beating forecasts for the third quarter as patients and governments began to resume spending on surgical procedures after cutting back during the recession.
Rentokil Initial fell 6.25% or 7p to 105p in spite of narrowing losses at its troubled City Link arm. The pest control company delivered Q3 figures slightly ahead of expectations, but Numis Securities warned there was still much to be done in terms of restructuring and said that shares looked to have gone too far.
On the fallers' board BP lost 3.2p to 583.9p and rival Royal Dutch Shell was 12p cheaper at 1754.5p despite oil prices edging higher towards 80 dollars a barrel.
Mobile phone giant Vodafone was down 1.65p at 135.8p or 1% ahead of its own first half results next week, expected to show a modest rise in earnings to £5.9bn.
Among other companies reporting figures today, sugar and ingredients group Tate & Lyle rose 7.6p to 464.5p after it reported first half trading slightly ahead of its expectations. Pre-tax profits fell to £50m, but analysts were impressed by a 15% rise in sales volumes of Splenda sucralose.
Shares in exploration small cap Xtract Energy sank over 20% to their lowest level since August after the company says that its Turkish joint venture Extrem Energy has suspended testing on its Alasehir-1 well.
The stock, which had been trading slightly higher on the day at 4.5p immediately before the statement, is trading down 26% at 3.25p.
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