HSBC slides despite near-record profit

Banking giant HSBC was among the biggest losers in London’s leading shares index yesterday after its £13.8 billion profits haul failed to impress investors.

Profits rose 15 per cent in 2011 but its fourth-quarter results disappointed the City and shares dropped 4 per cent, or 21.4p to 553.5p.

With Lloyds, Royal Bank of Scotland and Barclays also on the fallers’ board, the FTSE 100 Index declined about 19.58 points or 0.3 per cent to 5,915.55. It had been down more than 1 per cent earlier but climbed back above the 5,900 mark after a strong start from American markets. Lloyds was down 2.3 per cent at 34.9p, RBS lost 2 per cent to 27.94p, and Barclays was off 1.5 per cent at 243.8p.

The Footsie’s decline came despite a gain of 1 per cent for oil giant BP after it signalled it was close to a possible settlement over tens of thousands of damages claims arising from the Deepwater Horizon disaster.

The negotiations meant the start of its civil trial in New Orleans over the accident has been delayed by a week. BP shares were 5.5p higher at 501.7p.

Associated British Foods was lower despite saying that its budget fashion chain Primark had continued its storming run of form. Its shares fell 19p to 1,200p after strong gains in recent months.

Housebuilder Bovis recovered earlier falls in the FTSE 250 Index after reporting a 41 per cent jump in sales reservations so far this year and a 74 per cent hike in profits to £32.1 million for 2011. Shares were up 4.5p at 510p. Shares in fellow FTSE 250 firm Wood Group were up 8.5p at 749p after the Aberdeen-based oil services firm said it had won a contract with Premier Oil worth £250m.

New York: The benchmark S&P index closed at its highest level since mid-2008 last night, extending gains for a third session as oil prices retreated after recent sharp gains and data showed further improvement in the US housing market.

The Dow Jones industrial average closed down 1.44 points, or 0.01 per cent, at 12,981.51 but the Standard & Poor’s 500 Index was up 1.90 points, or 0.14 per cent, at 1,367.64 by the close. The Nasdaq Composite Index ended up 2.41 points, or 0.08 per cent, at 2,966.16.