FTSE edges up as Lloyds gains
The FTSE 100 clawed back some lost ground in early trading with Lloyds among the top gainers after quarterly results that matched forecasts.
London’s blue-chip index ended April in negative territory yesterday – its second consecutive monthly loss – as concerns rose over Spain’s economy and political tensions in Europe took their toll.
Meanwhile UK manufacturing growth has slowed according to figures out this morning. The Markit/CIPS Manufacturing Purchasing Managers’ Index (PMI) dropped to 50.5 in April from a downwardly revised 51.9 in March, keeping the sector just above the 50 level that separates growth from contraction.
But the FTSE was resilient with Lloyds rising 2.3 per cent after reporting quarterly profit roughly in line with expectations and saying it would set aside another £375m to cover compensation for people mis-sold insurance. Barclays and RBS were up 0.4 per cent.
Imperial Tobacco was the steepest climber on the index, up more than two per cent after reporting a return to sales growth and a £500m share buy back. Drinks giant Diageo was up 1.3 per cent.
In mining Fresnillo was the best performer, up more than one per cent. Xstrata, the subject of a takeover bid by Glencore, was flat despite an update in which it said its copper production had edged down.
Insurer Aviva – which has announced that its chief executive Andrew Moss has waived a pay rise – nudged up by 1.6 per cent.
Meanwhile building services company Wolseley lifted by a similar level.
On the down side oil major BP fell two per cent after it reported a bigger-than-expected drop in profits, despite an increase in crude prices, as production fell after it was forced to sell fields to pay for the Gulf of Mexico oil spill. Also in the sector Tullow Oil was off by 0.6 per cent.
Hedge fund giant Man Group was down more than three per cent despite reporting a reduction in client outflows having suffered a torrid time since the summer. The firm said clients withdrew a net $1bn in the three months to 31 March. Chief executive Peter Clarke dismissed the need for a takeover of the firm, which has been the subject of acquisition speculation.
In Asia the Nikkei closed down 1.7 per cent and the Hang Seng up 1.7 per cent. Across the Atlantic later US manufacturing and construction figures are both due for release.