London midday: Stocks nudge up as Lloyds impresses, GDP revised higher
Stocks in London were a smidgen higher at midday following solid earnings from Lloyds Banking Group and news that the UK economy grew slightly faster than expected in the final quarter of last year.
The FTSE 100 was up 0.1% to 7,278.50. Meanwhile, the pound was down 0.4% against the dollar to 1.2429 and flat against the euro at 1.1838.
Data from the Office for National Statistics showed gross domestic product grew 0.7% in the fourth quarter, up a touch from the estimate of 0.6% growth at the end of last month.
Industrial output grew by 0.3%, up from a previous estimate of no growth, while construction growth was revised up to 0.2% from 0.1%.
However, for 2016, growth was 1.8% higher than the year before, revised down by 0.2 percentage points from the preliminary estimate.
Chris Beauchamp, chief market analyst at IG, said: “Yesterday saw the banking sector knock a sizeable chunk off the FTSE 100, but today the picture is the reverse, as financials account for around half the gains in point terms."
"Lloyds is one of the chief contributors, after it published results that included a higher dividend and a welcome reduction in PPI claim provisions. Bargain-hunters are also active in HSBC, as yesterday’s sharp fall suddenly renders the bank much more attractive. Given the bullishness prevailing in markets, it makes sense to wait for such opportunities – it certainly worked for those brave enough to buy into Rolls-Royce last week."
“UK GDP data was revised higher for the quarter-on-quarter number, but the cut to the yearly figure prompted another drop for cable, putting the pair on a path back to $1.24; selling the rallies has been a pattern here, especially with hawkish Fed members doing the rounds.”
Lloyds Banking Group shares rallied after it more than doubled full year pre-tax profits to £4.2bn from £1.6bn in 2015 as it announced a special 0.5p-a-share dividend.
Housebuilder Barratt Developments was also on the front foot as it posted a first-half pre-tax profit of £321m, up 8.8% on the same time a year ago.
Metro Bank advanced as it said its full year pre-tax losses narrowed to £16.7m from £49.1m and reported a 56% rise in deposit growth to £7.9bn
Unite Group was in the black as the student accommodation manager posted a 24% rise in adjusted earnings for 2016 to £61.3m.
UBM racked up strong gains as the events company reported a rise in 2016 pre-tax profit to £120.1m from £119.6m the year before.
Petrofac pushed higher after the oilfield services group said it swung to a profit in 2016.
On the downside, outsourcer Serco tanked after it reported a drop in trading profit for the year to the end of December as revenue declined, but said it swung to a pre-tax profit and reiterated its guidance for 2017.
Weir Group declined after it said pre-tax profit in the year to the end of December fell 22% to £170m.
Drug maker Indivior slumped after it said pre-tax profit for 2016 was dented by a one-off litigation charge.
FTSE 250 recruiter Hays was in the red despite reporting a rise in net fees and profit for the first half of the year, thanks to solid performances in Germany and Australia.
Still to come, US existing home sales are at 1500 GMT while the FOMC minutes are due at 1900 GMT.
Market Movers
FTSE 100 (UKX) 7,278.50 0.05%
FTSE 250 (MCX) 18,722.84 -0.26%
techMARK (TASX) 3,354.46 -0.10%
FTSE 100 - Risers
Lloyds Banking Group (LLOY) 69.23p 3.68%
Barratt Developments (BDEV) 525.50p 2.14%
Rolls-Royce Holdings (RR.) 748.00p 2.12%
Capita (CPI) 544.00p 1.87%
Royal Mail (RMG) 417.40p 1.78%
Reckitt Benckiser Group (RB.) 7,182.00p 1.51%
Imperial Brands (IMB) 3,810.50p 1.51%
Dixons Carphone (DC.) 305.40p 1.43%
Micro Focus International (MCRO) 2,218.00p 1.32%
Marks & Spencer Group (MKS) 327.70p 1.20%
FTSE 100 - Fallers
Anglo American (AAL) 1,300.50p -3.70%
BHP Billiton (BLT) 1,364.50p -2.92%
InterContinental Hotels Group (IHG) 3,778.00p -2.60%
Antofagasta (ANTO) 848.50p -2.30%
Rio Tinto (RIO) 3,568.50p -2.11%
Mediclinic International (MDC) 741.50p -1.66%
ITV (ITV) 200.40p -1.43%
Mondi (MNDI) 1,841.00p -1.18%
Smurfit Kappa Group (SKG) 2,190.00p -1.17%
Convatec Group (CTEC) 230.80p -1.11%
FTSE 250 - Risers
Spire Healthcare Group (SPI) 342.70p 5.06%
UBM (UBM) 756.50p 4.13%
Aldermore Group (ALD) 237.20p 3.36%
ZPG Plc (ZPG) 393.70p 2.58%
Galliford Try (GFRD) 1,536.00p 2.26%
Petrofac Ltd. (PFC) 893.00p 2.12%
Supergroup (SGP) 1,511.00p 2.09%
Unite Group (UTG) 620.50p 1.55%
Capital & Counties Properties (CAPC) 301.60p 1.48%
Essentra (ESNT) 510.50p 1.39%
FTSE 250 - Fallers
Serco Group (SRP) 126.90p -14.08%
Indivior (INDV) 326.00p -11.80%
Hays (HAS) 149.90p -4.76%
Vedanta Resources (VED) 977.50p -3.60%
Hunting (HTG) 559.50p -2.61%
OneSavings Bank (OSB) 364.50p -2.59%
Nostrum Oil & Gas (NOG) 470.10p -2.43%
Weir Group (WEIR) 1,976.00p -2.27%
Kaz Minerals (KAZ) 564.00p -2.25%
Evraz (EVR) 243.90p -2.13%