LONDON MARKETS: FTSE 100 Closes In The Red As HSBC Slides By Most Since 2009
February 21 2017 - 1:12PM
Dow Jones News
By Carla Mozee, MarketWatch
InterContinental Hotels Group raises dividend
U.K. stocks ended lower Tuesday, as HSBC PLC shares lost the
most in nearly 8 years after the banking heavyweight posted a wider
quarterly loss, but BHP Billiton Ltd. shares fared better following
financial results from the metals producers.
The FTSE 100 closed down 0.3% at 7,274.83, the lowest settlement
in a week, downshifting after a modest rise at the open. The index
on Monday ended fractionally lower
(http://www.marketwatch.com/story/ftse-100-in-holding-pattern-as-unilevers-drop-caps-gains-2017-02-20).
The blue-chips benchmark came under pressure early Tuesday as
HSBC shares (HSBA.LN) (HSBA.LN) (HSBA.LN) were knocked down. The
stock makes up roughly 7.7% of the FTSE 100's weighting, according
to FactSet.
The shares sank 6.5%, the worst decline since March 2009, after
the Asia-focused bank reported a fourth-quarter net loss of $4.23
billion
(http://www.marketwatch.com/story/hsbc-loss-widens-to-423b-plans-further-buyback-2017-02-21),
larger than its loss of $1.33 billion in the year-ago period. HSBC
did say it plans to buy back additional $1 billion of shares.
"In spite of the [stock] plunge it's still trading at its best
in more than 3 years and is up more than 50% from its post-Brexit
low," said Neil Wilson, senior market analyst at ETX Capital, in a
note. "But all the dollar-earning upside may have been baked into
the stock price already and with the pound now pretty steady, the
free ride for HSBC's shares looks over."
Financial results are due Wednesday from Lloyds Banking Group
(LLOY.LN) (LLOY.LN) and from Barclays PLC (BCS) (BCS) on Thursday.
Reports due Friday will be from Royal Bank of Scotland PLC (RBS.LN)
(RBS.LN) and Standard Chartered PLC (STAN.LN) .
Miners: Shares of BHP Billiton (BLT.LN) (BHP.AU) (BHP.AU) tacked
on 0.4%, but finished off session highs, after the world's largest
miner by market value swung to a profit of $3.20 billion in its
fiscal first half.
(http://www.marketwatch.com/story/bhp-billiton-returns-to-profit-raises-dividend-2017-02-21-04855710)The
result was aided by higher commodity prices and cost-cutting. BHP
also said it's raising its dividend.
Anglo American PLC (AAL.LN) also said Tuesday it swung to a
yearly profit, making $1.6 billion as commodity prices have
increased
(http://www.marketwatch.com/story/anglo-american-swings-to-profit-on-rising-prices-2017-02-21).
But the company's shares shifted lower, losing 0.7%. The shares
have jumped by more than threefold over the last year.
InterContinental Hotels Group PLC (IHG), the company behind the
Crowe Plaza and Holiday Inn chains, raised its dividend by 11%
(http://www.marketwatch.com/story/ihg-underlying-2016-profit-rises-hikes-dividend-2017-02-21)
and reported higher underlying earnings for 2016. Shares pared
stronger gains and closed up fractionally higher.
In the currency market, the pound was buying $1.2470, compared
with $1.2466 late Monday in New York.
Read:Economy is Britons' top worry after Brexit vote
(http://www.marketwatch.com/story/economy-is-britons-top-worry-after-brexit-vote-2017-02-21)
(END) Dow Jones Newswires
February 21, 2017 12:57 ET (17:57 GMT)
Copyright (c) 2017 Dow Jones & Company, Inc.
FTSE 100
Index Chart
From Apr 2024 to May 2024
FTSE 100
Index Chart
From May 2023 to May 2024