FTSE 100 risers: RBS pummeled, Asia-exposed financials take hit
Shares in RBS were pummeled after the majority state-owned lender warned of challenging times ahead, even as it delivered a bumper special dividend that more than doubled some analysts's forecasts alongside a higher than expected second quarter profit.
"It was RBS's misfortune to release earnings on such a tough day for markets," said IG's Chris Beauchamp.
"Special dividend aside however, there wasn’t much good new in the figures anyway, and the sell-off in the shares seems justified. Tough mortgage competition will continue to chip away at performance, to say nothing of Brexit and a possible no-deal scenario. Dividend or no dividend, the bank has a tough job ahead of it."
Miners were sharply lower for a second day in the wake of the US President's decision overnight to extend US trade tariffs to cover almost all of China's exports.
Financials most exposed to Asia such as StanChart and Prudential also took big hits.
Going the other way, IAG shares staged a bounce following second quarter figures showing an 18% jump in profits and a 7.2% increase in passenger revenues.
A smattering of other defensive issues followed behind on the leaderboard, including Astra Zeneca and Severn Trent.
Market Movers
FTSE 100 (UKX) 7,404.72 -2.38%
FTSE 100 - Risers
International Consolidated Airlines Group SA (CDI) (IAG) 445.00p 7.62%
Fresnillo (FRES) 611.40p 0.92%
Flutter Entertainment (FLTR) 6,538.00p 0.62%
AstraZeneca (AZN) 7,240.00p 0.56%
Land Securities Group (LAND) 795.20p 0.53%
Severn Trent (SVT) 2,041.00p 0.44%
TUI AG Reg Shs (DI) (TUI) 816.20p 0.32%
Croda International (CRDA) 4,676.00p 0.21%
National Grid (NG.) 856.60p 0.07%
SSE (SSE) 1,097.50p -0.32%
FTSE 100 - Fallers
Royal Bank of Scotland Group (RBS) 202.90p -6.54%
Antofagasta (ANTO) 844.60p -6.41%
Prudential (PRU) 1,598.00p -6.28%
Melrose Industries (MRO) 179.30p -6.17%
Johnson Matthey (JMAT) 3,030.00p -5.61%
Intertek Group (ITRK) 5,642.00p -5.37%
Evraz (EVR) 613.00p -4.99%
Glencore (GLEN) 242.25p -4.79%
BHP Group (BHP) 1,844.00p -4.76%
BT Group (BT.A) 184.86p -4.67%