By Carla Mozee, MarketWatch
HSBC chiefs grilled by U.K. lawmakers
LONDON (MarketWatch) -- U.K. stocks fell Wednesday, a day after
the benchmark FTSE 100 hit an all-time high, with shares of
engineering company Weir Group PLC sliding after a profit
warning.
The FTSE 100 fell 0.2% to 6,935.38. The move came after
Tuesday's rise of 0.5% to 6,949.63 that marked the index's best
close since December 1999
(http://www.marketwatch.com/story/what-the-ftse-100-closing-at-its-highest-level-in-15-years-means-2015-02-24).
Sinking to the bottom of the benchmark on Wednesday was Weir,
whose shares fell 8.8%. The shares suffered their worst percentage
loss since January 2009, after the maker of equipment for use in
the energy industry said it expects lower profit margins and
revenue this year
(http://www.marketwatch.com/story/weir-warns-on-profit-as-commodity-prices-fall-2015-02-25),
as commodity prices have dropped. Full-year profit tumbled to 73.1
million pounds ($113.4 million) from GBP334.9 million, hit by
exceptional items.
"While visibility in oil and gas remains limited, it is clear
that the group's strategic progress and cost initiatives will only
partly offset the impact of a substantial reduction in demand and
the associated pricing pressure," Weir Chief Executive Keith
Cochrane said in a statement.
The company's "outlook statement reads more negatively then we
expected," said Investec Securities analyst Thomas Rands in a note.
"Weir is aggressively cutting costs, including taking out 650 U.S.
posts in oil & gas, however, this will not be enough to offset
the lower demand and price cuts." Jefferies kept its sell rating on
Weir.
HSBC PLC (HSBC) shares fell 0.7%, but finished off session lows,
after the chairman and chief executive of the banking heavyweight
answered questions from U.K. lawmakers surrounding allegations the
company helped some clients avoid paying taxes. HSBC Chairman
Douglas Flint apologized for actions at its private bank in
Switzerland in the mid-2000s, and said the company has been making
key reforms.
HSBC Chief Executive Stuart Gulliver also addressed a Swiss bank
account that he held through a Panamanian company, saying it was
set up to protect his privacy about his pay from colleagues, and
not set up to avoid taxes. HSBC didn't advise him to set up that
account, Gulliver said at the Treasury committee hearing.
GKN PLC was also on the FTSE list of decliners, with shares
falling 2.1%. On Tuesday, the shares lost 3.2% after the
engineering company said full-year sales and pretax profit
(http://www.marketwatch.com/story/gkn-profit-falls-amid-currency-hit-2015-02-24)
fell because of currency movements.
But topping the benchmark was St. James's Place PLC , with
shares up 4.3% after the wealth manager raised its final dividend
by 50%
(http://www.marketwatch.com/story/st-jamess-place-funds-under-management-up-in-2014-2015-02-25-3485830)
to 14.37 pence. It also said funds under management in 2014 rose to
GBP52 billion pounds, from GBP44.3 billion at the end of 2013.
Stock in Whitbread PLC gained 2.7%, after the owner of Costa
Coffee and Premier Inn hotels forecast full-year results will come
in around the top end of expectations.
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