FTSE close: Banks, Autonomy up; BAE falls

By Ed Monk for Thisismoney.co.uk
Updated:

 

17.15 (close)

People walk past London's Stock Exchange

Taking stock: Investors will wait for US ad corporate news

The banking sector kept the FTSE 100 Index out of the red today and offset falls from heavily-weighted miners.

The Footsie closed 2.1 points higher at 6087.4 after struggling to make headway throughout the session.

It was a similar picture on Wall Street as investor confidence was shaken by worse-than-expected US inflation and unemployment data and emerging political unrest in Libya, Bahrain and Iran.

The US Labor department reported a higher-than-expected increase in unemployment claims last week and inflation increased on a monthly basis at an above forecast 0.4% in January.

In London, miners also weighed the market down as copper prices stumbled to three-week lows, with Anglo-Swiss firm Xstrata down 3% or 37p at 1440p, while copper miner Kazakhmys was not far behind, dropping 33p at 1505p.

The pound was boosted by a hawkish speech from Bank of England policymaker Andrew Sentance, who stepped up his case in favour of an interest rate hike. Sterling rose to 1.61 US dollars and 1.18 euros.

In corporate news, BAE Systems sank to the bottom of the FTSE 100, losing 4% or 14.8p at 340.9p, after the defence giant warned sales were likely to fall in 2011.

Shares in B&Q parent Kingfisher dropped 0.8p to 256.5p despite forecasting a 20% rise in annual profits.

The group said strong international growth helped to offset continued tough trading in the UK as full-year profits are expected to be at the top end of analysts' expectations.

Banks littered the risers' board as confidence in the sector was boosted by upbeat earnings from Barclays and French giant Societe Generale.

Royal Bank of Scotland led the sector, adding 1.8p to 49p, while Lloyds was not far behind, up 1.98p at 69.2p. Barclays was also on the rise, up 1.6p at 333.6p, while HSBC climbed 9.4p to 730.9p.

It is the third session in which banks have outperformed the market after Barclays announced a 32% rise in pre-tax profits to £6.1bn on Tuesday.

Outside the top flight, Ladbrokes' shares dropped 2.5p to 139.5p after the UK's biggest bookmaker reported a 20% jump in annual profits.

Meanwhile, Sports Direct fell 1.8p at 165.8p despite confirming it will meet its profits target of £205m, triggering a £10.8m pay-out for more than 2,000 staff.

Homebuilder Redrow returned to first-half profits for the first time since 2007 and said reservations in the first six weeks of 2011 were comfortably ahead of last year.

While its shares failed to receive a boost - down 2.3p to 130.7 - the wider market moved ahead with Taylor Wimpey up 1.6p at 38.6p, Bovis ahead 7.5p at 444.6p and Persimmon adding 5.1p at 439.1p.

The biggest Footsie risers were Autonomy up 69p at 1703p, Lloyds Banking Group ahead 1.98p at 69.2p, Resolution up 13.9p at 294.5p and African Barrick Gold up 18.5p at 550.5p.

The biggest Footsie fallers were BAE Systems down 14.8p at 340.9p, Xstrata off 37p at 1440p, Tullow Oil down 39p at 1370p and Vedanta Resources off 45p at 2400p.

16.15: The FTSE 100 is down 8.5 points at 6,076.7 as the session draws to a close.

The Dow Jones has steadied and is trading 7 points lower at 12,281.1.

We have more on Kingfisher, which is down 0.3p at 257p despite forecasting a 20% rise in profits this year.

Shares in betting shop group Ladbrokes have reversed direction and are down 2p at 140p as investors mull its plans to invest £50m in technology over the next two years. We have more here.

14.50:

On Wall Street, the Dow Jones has opened and is down in early trade.

The Dow has shed 26.57 points and is at 12.264.6 shortly after opening.

Back in London, the FTSE 100 is 12.007 points down now, at 6073.20.

13.00:

Royal Bank of Scotland is topping the UK blue-chips at lunch time, 1.8p up at 49p

Rival Lloyds is not far behind, up 1.9p at 69.1p. Barclays is also on the rise, up 5p at 337p, while HSBC climbed 15.9p to 737.4p.

It is the third session in which banks have outperformed the market after Barclays announced a 32% rise in pre-tax profits to £6.1bn on Tuesday.

Sports Direct is 1% up, or 1.75p to 169.35p, after it said it will meet its profits target of £205m, triggering a £10.8m pay-out for more than 2,000 staff.

Sales at the retailer soared 12% to £416m in the 13 weeks to January 23 and the strong performance continued into February. We've got more on that here.

12.00:

We have more on BAE Systems, which has issued a warning on 2011 sales as it grapples with defence spending cuts in the UK and US.

Its shares tumbled 4%, or 15.7p, to 340p.

The FTSE 100 is still trading in lacklustre fashion, up 2.5 points at 6,087.7.

Futures trading points to a flat opening on US markets as investors await inflation and jobs data.

11.25:

Brent rose as high as $104 on fears that Middle East supply may be disrupted after Iran said two of its warships would pass through the Suez canal to Syria.

The emergence of Iran as a potential scene for disruption would have a pronounced impact on oil markets. Iran is the world's fourth largest oil producer and an OPEC (Organisation of Petroleum Exporting Countries) member.

Brent is now at a two-and-a-half-year high, at $104.30, while US crude West Texas Intermediate (WTI) is significantly lower at $85.22.

We've got more on this here.

In equities, the FTSE 100 is 3.5 points lower at 6081.77.

09.55:

The FTSE 100 has struggled to make headway despite gains for the banks, with BAE Systems suffering after warning on sales.

Shares made a sluggish start today as investors paused for breath ahead of a batch of economic figures from the UK and United States.

The FTSE 100 Index stood 5 points higher at 6090.8, as banks continued to ride a wave of confidence in the sector, triggered by upbeat earnings from Barclays and French giant Societe Generale.

The positive start followed a strong session in Asia, where stock markets were buoyed by corporate earnings and the minutes of January's meeting of the US Federal Reserve, which showed cautious optimism over the economic recovery.

But the London market struggled to make ground as traders awaited inflation and unemployment stats from the US, as well as the February CBI industrial trends survey in the UK.

Royal Bank of Scotland topped the UK blue-chip index, adding 1.2p to 48.4p, while Barclays was not far behind, up 5.4p at 337.4p, and Lloyds advanced 1p to 68.2p.

B&Q parent Kingfisher took its spot on the risers' board after it forecast a 20% rise in annual profits. The group said strong international growth had helped to offset continued tough trading in the UK.

BAE Systems sank to the bottom of the Footsie, losing 3% or 11.7p at 344p, after the defence giant warned sales were likely to fall in 2011.

Outside the top flight, Ladbrokes' shares added 0.2p to 142.2p after the UK's biggest bookmaker reported a 20% jump in annual profits.

The pound at 9am was $1.6092 compared to $1.6058 at the previous close. Against the euro, the pound was €1.1871 compared to €1.1860 at the previous close.

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