By Carla Mozee, MarketWatch
BAE rises, but AstraZeneca falls
U.K. stocks rose Friday, with a climb in HSBC Holdings PLC as
the bank considered ditching the U.K. as its home base, while BAE
Systems PLC gained as it considers the sale of some U.S.
assets.
But AstraZeneca PLC shares were lower following the
pharmaceutical company's financial results.
The FTSE 100 rose 0.2% to 7,070.70, and picked up 1.1% for the
week. The British blue-chips index is up 7.7% so far this year.
HSBC: HSBC (HSBC) shares jumped to the top of the FTSE 100,
climbing 2.9% after the lender said it's reviewing whether to move
its headquarters out of the U.K.
The company, in assessing regulatory and structural reforms
enacted after the financial crisis, is looking at "where the best
place is for HSBC to be headquartered in this new environment,"
according to a speech Group Chairman Douglas Flint was to deliver
at the bank's annual general meeting in London.
Shares of Asia-focused bank Standard Chartered PLC also rose, by
0.8%, with recent reports that the lender is also considering a
move out of the U.K. HSBC itself is the largest bank in Hong
Kong.
HSBC's review comes after the U.K. government said it plans to
raise the rate of a bank levy to 0.21% from 0.156%. The British
finance chief, George Osborne, said in March the move would raise
about GBP900 million to support the country's economic recovery
after the financial crisis. The levy reportedly cost HSBC GBP750
million last year.
Movers: Elsewhere on the FTSE 100, BAE Systems shares climbed
2.3% as the defense company said it's been approached about a
takeover of some of its U.S.-based assets
(http://www.marketwatch.com/story/bae-systems-considers-sale-of-some-us-activities-2015-04-24-24851613).
Its U.S. manpower and services business, which largely does work
for the U.S. government, is generating "external interest and a
number of enquiries", BAE said.
Mining shares were higher, with some benefiting from a rise this
week in iron-ore prices. Shares of BHP Billiton PLC (BHP) and Rio
Tinto PLC (RIO) , the largest iron-ore producers, rose 2.1% and
1.5%, respectively.
But AstraZeneca PLC shares fell 1.7% after the pharmaceutical
heavyweight posted a fall in first-quarter revenue and profit
(http://www.marketwatch.com/story/astrazeneca-profit-down-as-sales-of-stalwarts-fade-2015-04-24)
as it invests in new drugs. Core net profit fell 7% to $1.37
million, and revenue declined 6% to $6.06 billion.
Shares of Reckitt Benckiser Group PLC turned lower, slipping
0.2%. The consumer-products company said first-quarter revenue rose
1%
(http://www.marketwatch.com/story/reckitt-benckiser-revenue-up-1-backs-guidance-2015-04-24)
and that it's on track to meet its growth targets for the year.
Excluding currency movements, and the impact of mergers and
acquisitions, its sales rose 5% from the year-ago period.
Merlin Entertainments PLC shares fell 1.4% after J.P. Morgan
Cazenove downgraded the operator of Legoland and other theme parks
to neutral, saying its "strong prospects are now fully valued."
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