London afternoon: Footsie in positive territory

28th Apr 2010 14:40

The FTSE 100 is now in positive territory as heavily weighted index constituents such as Shell, BP, HSBC and Glaxo make headway, but the FTSE 250 index remains in the red.Higher oil prices helped Royal Dutch Shell post a sharp rise in earnings in the first quarter of 2010. Profit jumped to $4.9bn on a current cost of supplies (CCS) basis from $3.3bn last year. There was a strong improvement in upstream profit to $4.4bn, although downstream earnings fell to $743m from $1bn. BP, BG Group and Tullow are also higher.Pharmaceuticals giant GlaxoSmithKline's first quarter results revealed turnover that was higher than expected at £7,357m, versus expectations of £7,117m. Earnings per share, excluding restructuring costs, were 30.7p versus Citigroup's forecast of 29.1p. With restructuring costs factored in earnings per share were 30.7p. The dividend has been increased to 15p.Royal Bank of Scotland (RBS) has seen early losses trimmed as shareholders at the bank's AGM prepare to vote on the bank's new Long Term Incentive Plan for executives. Nick Poyntz-Wright is stepping down as boss of Old Mutual's UK wealth management business to be replaced by chief development officer Peter Mann.Gold miner Randgold Resources is wanted on expectations that investors will turn to precious metals as havens during an expected period of economic turmoil.British American Tobacco did well in the first quarter despite weaker volumes, helped by last year's acquisition of Indonesia's Bentoel and currency moves. The world's second largest tobacco company said revenue for the three months grew in constant currency terms across all regions, but volumes dropped to 168bn from 170bn in 2009.Sales rose but underlying profits fell last year at Home Retail as weak consumer spending and higher product costs put pressure on margins at Argos, though Homebase staged a recovery. Sales rose 2% to £6.02bn in the year to February, but discounts and promotions took their toll on underlying profits, down to £293m from £328m.Elsewhere in retail floor coverings chain Carpetright warned that UK conditions have continued to be difficult with sales falling slightly below company expectations.Rolls-Royce remains on track for the full-year after trading in line with expectations since the start of 2010, although business is still challenging and the volcanic eruptions in Iceland haven't helped. Chief executive John Rose still thinks the aircraft engine maker can double revenue over the next decade.Speciality chemicals supplier Croda reported better than expected first quarter results as robust trading continued and is confident of significant progress for the remainder of the year. Pre-tax profit from continuing operations almost doubled to £42.4m from £21.7m in 2009.A strong performance from its rail arm has prompted Stagecoach to upgrade its forecasts for the year, with earnings per share now expected to come in at 17.5p at least. The shares trade higher, in contrast to sector peer National Express which has reportedly had to delay a €300m euro-denominated bond issue as a result of the turmoil in credit markets following the ratings downgrades yesterday for Greek and Portuguese sovereign debt.Brewer and pub operator Greene King reported strong trading for the 49 weeks to April 11, with higher sales from its more food-orientated managed operations helping to offset weakness at leased pubs.Satnav systems supplier Trafficmaster is in discussion over a possible bid, it said today.Shares in 888 Holdings are lower after the online gambling company said trading has been disappointing in the second quarter so far in casino, poker and bingo operations. Broker KBC Peel Hunt has downgraded the stock from "buy" to "hold".Industrial conveyor belt maker Fenner has announced a placing to fund acquisitions after posting a rise in pre-tax profits in the six months to February 28 despite lower revenues. Another company raising funds through a placing is F&C Asset Management , which is raising up to £15m. The company is to buy Thames River Capital for up to £53.6m. Ports operator Forth Ports has rejected an improved takeover offer worth about £640m, or 1,400p a share in cash, received yesterday.Fund manager Gartmore has reinstated its star manager Guillaume Rambourg just weeks after suspending him as part of an inquiry into breaches of trading rules.