A RAFT of results statements helped support the London market yesterday, as did rising commodity prices, sending the FTSE 100 Index 0.6 per cent higher.
The blue-chip marker gained 35.8 points to close at 6,251.8 – but remains down by more than
3 per cent in the year to date.
On a busy day for corporate reporting, telecoms giant BT contributed most points to the Footsie, with its shares climbing 5.4 per cent to 235.25p after the group posted a rise in fourth-quarter underlying core earnings and said it expected to deliver continued growth next year.
Confectioner Cadbury rose 3.9 per cent to 672p on the back of first-half sales growth and persistent merger talk. The maker of Dairy Milk chocolate, Trident gum and Halls cough drops said first-half growth in confectionery sales would beat its 4-6 per cent target range.
On the back foot, Royal Bank of Scotland tumbled 13.6 per cent, or 43.25p, to 276p after its shares began trading without the rights to new stock offered by the bank in its cash call last month.
Rival Barclays said it was still considering fundraising options – such as tapping shareholders for cash – as it unveiled a £1 billion first quarter writedown caused by credit market difficulties. Shares in Barclays fell 2 per cent, or 8.5p, to 418.75p.
Britain's biggest mortgage lender, HBOS, was 5p lower at 465.25p, while Alliance & Leicester fell 6p to 439.75p.
CMC Markets dealer Jimmy Yates said: "It's been another mixed day for the London index, with early losses being reversed on the back of generally upbeat earnings news from a number of UK corporates.
"BT was perhaps the anomaly here, but an upward revision to dividend payments has been enough to push the stock to the top of the FTSE 100 leader board.
"There is, however, some caution among the banks after news of Barclays' further writedowns, and speculation that another rights issue may be seen in the sector is clearly weighing."
Shares in newspaper publisher Johnston Press rallied 3.3 per cent to 119p a day after news of its £200m-plus rights issue and subscription.
Howard Wheeldon, senior strategist at BGC Partners, yesterday described the cash call as a "wise move". He added: "Being early in the right call game may prove to be particularly useful as the economy battens down to what may be a long period of low growth."
ITV was on the back foot despite executive chairman Michael Grade telling investors that a turnaround plan was on track, with net ad revenues up 2 per cent in the first three months of the year. Shares in the broadcaster dipped 1p to 61.9p.
The market was also underwhelmed by plans to revive Currys and PC World owner DSG International through cost cutting and closing stores. Shares in the company were 8 per cent lower – closing down 5.25p at 64p.
The full article contains 514 words and appears in The Scotsman newspaper.
