FTSE 100 movers: Commodity stocks rise, Hiscox sinks

by | Aug 9, 2023

(Sharecast News) – Mining stocks were up across the board on Wednesday, clawing back losses after a poor showing the previous session as weak economic data from China fuelled concerns over demand.

Glencore, which disappointed the market yesterday with its first-half results, was among the best performers, along with Anglo American, Rio Tinto and Antofagasta.

Oil giants BP and Shell were also on the rise as crude prices reached their highest levels this year. WTI futures were at $84.12, while Brent rose reached a high of $87.24 – both up over 1% on the day.

Banks were rebounding after the Italian government came out to clarify details of its windfall tax on domestic bank profits. Monday evening’s surprise announcement by the government to slap a 40% tax on banks’ net interest margin sent tremors across the continent, but it has now been clarified that the levy won’t exceed 0.1% of an institution’s assets. Barclays, Lloyds and Natwest were all higher.

Hotels group IHG was extending gains made on Tuesday after impressing the market with its first-half report. The stock reached an all-time high of 6,026p earlier in the session.

Bottling company Coca-Cola HBC came off its earlier highs but was still on the rise after lifting its full-year forecasts. The company said it was on track for organic growth of 6-7% for the year, up from previous guidance of 5-6%.

Leading the fallers on the FTSE 100 was insurance group Hiscox, dropping 7% despite reporting a sharp jump in profits in the first half. Analysts pointed out that results failed to meet expectations, noting slower growth in the retail division.

Meanwhile, shares of gambling giant Flutter Entertainment dropped into the red despite the company meeting expectations with its first-half results that showed 38% revenue growth and a swing to profitability. The stock has risen nearly 30% so far this year.

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