London midday: Stocks a little lower amid raft of earnings; ECB eyed

by | Oct 28, 2021

London stocks were still a little lower by midday on Thursday as investors sifted through a slew of earnings news ahead of the latest policy announcement from the European Central Bank and the US third-quarter GDP reading.
The FTSE 100 was down 0.2% at 7,240.59.

Russ Mould, investment director at AJ Bell, said: “Despite the best efforts of Lloyds and GlaxoSmithKline to drive the FTSE 100 forward, the UK stock benchmark slipped…because of negative movements from index heavyweights Royal Dutch Shell and HSBC.

“Lloyds beat forecasts with its latest quarterly results, helped by the release of more cash that had been set aside for pandemic-related bad debts as well as a strong performance with mortgage lending.

“Investors have been warming to banks in recent months in hope that rising inflation will prompt higher interest rates, which in turn provides more opportunities for lenders to increase earnings.

“The European Central Bank will update the market later today and investors will be looking for any shift in thinking with regards to inflationary pressures. Slowing economic growth and a rising cost of living are big concerns to the market, but the message from central banks in general has been that the current spike in inflation will be short-lived.”

In equity markets, Royal Dutch Shell was weaker as it reported lower-than-expected third-quarter adjusted earnings after taking a $400m hit from Hurricane Ida’s impact on operations.

Travis Perkins was in the red despite lifting its profit forecast again, while steel producer Evraz fell after it said third-quarter sales declined amid a slowdown in the Russian construction market.

On the upside, WPP gained after the advertising giant upgraded its guidance for 2021 as it hailed a “very strong” third-quarter performance.

DS Smith advanced as the packaging company said its first half was in line with expectations as price rises offset rising input costs.

Lloyds was a high riser as it improved its full-year guidance after reversed bad debts contributed to a near doubling of third-quarter profit.

Airtel Africa surged as the telecommunications provider posted a jump in first-half profit and revenue, with “strong” performances across its regional segments and key services.

C&C Group fizzed higher as the Magners, Bulmers and Tennent’s maker said it swung back to a profit in the first half as revenues grew thanks to the reopening of hospitality venues.

Car dealership Inchcape was trading higher after it lifted its 2021 profit expectations following a “strong” third-quarter performance.

Market Movers

FTSE 100 (UKX) 7,240.59 -0.17%
FTSE 250 (MCX) 23,170.39 -0.01%
techMARK (TASX) 4,575.62 0.09%

FTSE 100 – Risers

WPP (WPP) 1,029.50p 6.55%
Darktrace (DARK) 761.50p 4.24%
Fresnillo (FRES) 886.00p 3.63%
GlaxoSmithKline (GSK) 1,481.20p 2.73%
Coca-Cola HBC AG (CDI) (CCH) 2,525.00p 2.14%
Smith (DS) (SMDS) 386.00p 1.66%
Lloyds Banking Group (LLOY) 49.73p 1.57%
Aveva Group (AVV) 3,583.00p 1.39%
Polymetal International (POLY) 1,386.50p 1.28%
Smurfit Kappa Group (CDI) (SKG) 3,811.00p 1.06%

FTSE 100 – Fallers

Evraz (EVR) 623.80p -2.20%
Royal Dutch Shell ‘B’ (RDSB) 1,734.80p -1.88%
Barratt Developments (BDEV) 663.60p -1.69%
Royal Dutch Shell ‘A’ (RDSA) 1,737.20p -1.61%
DCC (CDI) (DCC) 6,142.00p -1.60%
Kingfisher (KGF) 332.70p -1.57%
Abrdn (ABDN) 255.10p -1.47%
Flutter Entertainment (CDI) (FLTR) 14,065.00p -1.44%
Vodafone Group (VOD) 110.42p -1.43%
Royal Mail (RMG) 415.70p -1.42%

FTSE 250 – Risers

Airtel Africa (AAF) 110.50p 11.34%
C&C Group (CDI) (CCR) 265.00p 6.17%
Bytes Technology Group (BYIT) 514.50p 5.04%
Baltic Classifieds Group (BCG) 215.00p 4.37%
Synthomer (SYNT) 494.20p 4.26%
Watches of Switzerland Group (WOSG) 1,132.00p 2.54%
Inchcape (INCH) 823.50p 2.23%
Trainline (TRN) 319.00p 2.18%
Hochschild Mining (HOC) 151.00p 2.03%
Baillie Gifford Shin Nippon (BGS) 238.00p 1.71%

FTSE 250 – Fallers

Plus500 Ltd (DI) (PLUS) 1,327.00p -5.35%
Travis Perkins (TPK) 1,522.50p -3.94%
Network International Holdings (NETW) 338.10p -3.76%
Hammerson (HMSO) 32.23p -3.13%
Reach (RCH) 317.00p -2.76%
Helios Towers (HTWS) 162.40p -2.40%
TP Icap Group (TCAP) 157.72p -2.21%
Redde Northgate (REDD) 389.50p -2.14%
Cairn Energy (CNE) 182.80p -2.04%
Mitchells & Butlers (MAB) 255.40p -2.00%

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