FTSE 100 movers: Melrose surges; oil giants gush lower
By Michele Maatouk
Date: Monday 28 Oct 2024
(Sharecast News) - London's FTSE 100 was up 0.4% at 8,284.36 in afternoon trade on Monday.
Aerospace engineer Melrose Industries surged to the top of the index after it put out a document explaining the accounting around its Risk and Revenue Sharing Partnerships (RRSPs).
EasyJet flew higher as oil prices slumped after Israel's retaliatory missile strikes on Iran avoided its oil infrastructure.
Lloyds Banking Group was in the red again following heavy losses on Friday, after a Court of Appeal ruling last week sided with consumers in a row over commissions earned by companies providing car finance loans.
Lloyds said on Monday that it was assessing the implications of the ruling, which set a new standard for motor dealers acting as credit brokers, requiring them to disclose commissions paid by lenders more comprehensively to customers.
Danni Hewson, head of financial analysis at AJ Bell, said: "Lloyds was in damage control mode on Monday morning after Friday's ruling on motor finance commission arrangements at the Court of Appeal potentially broadened the scope of the scandal.
"This will increase nervousness ahead of the FCA's own probe into the issue and potentially prolong the agony for Lloyds and the other names affected. If the regulator does adopt a wider lens thanks to this latest ruling then the results of its investigation may well come in later than May, which was when a judgement had been expected.
"For now, Lloyds has put out what is very much a holding statement, with the shares only showing limited damage this morning after a more meaningful slump on Friday afternoon. It will be telling to see if the company proactively increases any provisions made for compensating customers, although given the remaining uncertainties quantifying the impact will be tricky.
"While Lloyds is not a participant in the Court of Appeal case, it is notable that those which are, including Close Brothers, intend to further appeal this latest ruling at the UK Supreme Court. All told, any glow from Lloyds' better-than-expected quarterly numbers last week has well and truly disappeared."
Shell and BP gushed lower on the back of the oil price decline.
FTSE 100 - Risers
Melrose Industries (MRO) 474.70p 6.57%
easyJet (EZJ) 518.00p 2.33%
Halma (HLMA) 2,523.00p 2.15%
Pearson (PSON) 1,062.00p 1.82%
Informa (INF) 834.60p 1.61%
Barratt Redrow (BTRW) 479.30p 1.42%
Relx plc (REL) 3,697.00p 1.40%
Intermediate Capital Group (ICG) 2,142.00p 1.32%
Taylor Wimpey (TW.) 156.85p 1.32%
SSE (SSE) 1,851.00p 1.28%
FTSE 100 - Fallers
Lloyds Banking Group (LLOY) 56.06p -2.43%
Shell (SHEL) 2,499.00p -2.16%
BP (BP.) 396.45p -2.10%
BT Group (BT.A) 141.75p -1.63%
Airtel Africa (AAF) 107.30p -1.10%
Barclays (BARC) 238.60p -0.99%
Fresnillo (FRES) 750.50p -0.99%
Centrica (CNA) 122.10p -0.97%
Glencore (GLEN) 401.50p -0.72%
Flutter Entertainment (DI) (FLTR) 17,305.00p -0.66%
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