London midday: Stocks up but off highs as StanChart surges on results

2nd May 2024 11:13

(Sharecast News) - London stocks were still in the black but off earlier highs by midday on Thursday, helped along by solid performances from the likes of Standard Chartered and Smurfit Kappa, as investors continued to digest the latest policy announcement from the Federal Reserve.

The FTSE 100 was up 0.3% at 8,147.84.

Russ Mould, investment director at AJ Bell, said: "The chair of the Federal Reserve Jerome Powell gave with one hand and took away with the other from a market perspective.

"As the Fed kept rates on hold as expected, Powell largely dismissed any idea they might rise from the current levels despite inflation proving more stubborn than hoped. However, he did warn rates would stay higher for longer.

"He tried to reassure on the risks of stagflation - a slowing economy and rising prices at the same time - arguing he didn't see the 'stag' or the 'flation'. However, he, like other central bankers, said inflation would be transitory in 2021 so his track record on predictions isn't exactly unblemished.

"In a reflection of this mixed commentary, US stocks endured a seesaw session last night. The FTSE 100 pressed on, not far off the latest record highs set on Tuesday, helped by better-than-expected results from index heavyweight Shell."

Investors were mulling the latest from the OECD, which cut its UK growth forecast for this year to 0.4% from 0.7% predicted in February, as it cited high taxes and interest rates. Among the G7, only Germany is expected to perform worse, with 0.2% growth projected.

The OECD said UK GDP growth was expected to "remain sluggish" in the face of a "waning drag from past monetary tightening".

In equity markets, Standard Chartered surged as it backed its full-year guidance and posted better-than-expected first-quarter profits as it continued to benefit from higher interest rates.

Pre-tax profit rose 6% to $1.9bn, coming in ahead of expectations of $1.4bn. Net profit increased 5% to $1.22bn, comfortably beating expectations of $798m.

Smurfit Kappa rallied as it hailed a "very strong" first quarter and said box demand has continued to improve, with volume growth in Europe and the Americas.

Oil and gas giant Shell gushed higher as it reported a 15% jump in earnings in the first three months of the year compared with the final quarter of the year, on the back of higher margins from crude and oil products trading. It also unveiled a new $3.5bn share buyback.

Fluid engineering specialist TI Fluid Systems was trading up as it held guidance after first-quarter revenues fell 0.4%, in line with expectations.

On the downside, Relx, Glencore, Inchcape, Senior, Genuit and IWG all fell as they traded without entitlement to the dividend.

Melrose Industries slumped even as it posted an increase in revenues and backed its guidance for the year.

Hiscox also fell even as it reported a rise in first-quarter written premiums as it benefited from accelerated growth in the retail segment.

Market Movers

FTSE 100 (UKX) 8,147.84 0.33%

FTSE 250 (MCX) 19,927.20 0.00%

techMARK (TASX) 4,592.90 0.14%

FTSE 100 - Risers

Standard Chartered (STAN) 733.60p 5.55%

Smurfit Kappa Group (CDI) (SKG) 3,602.00p 3.68%

Prudential (PRU) 721.00p 2.27%

Coca-Cola HBC AG (CDI) (CCH) 2,652.00p 1.92%

International Consolidated Airlines Group SA (CDI) (IAG) 176.30p 1.88%

London Stock Exchange Group (LSEG) 9,006.00p 1.88%

Flutter Entertainment (DI) (FLTR) 15,175.00p 1.85%

Diploma (DPLM) 3,684.00p 1.82%

Taylor Wimpey (TW.) 132.75p 1.69%

Airtel Africa (AAF) 113.70p 1.61%

FTSE 100 - Fallers

Beazley (BEZ) 634.00p -3.79%

Melrose Industries (MRO) 600.60p -3.32%

Whitbread (WTB) 3,040.00p -1.90%

Anglo American (AAL) 2,594.00p -1.54%

DCC (CDI) (DCC) 5,470.00p -1.53%

Glencore (GLEN) 459.80p -1.44%

Antofagasta (ANTO) 2,139.00p -1.34%

Kingfisher (KGF) 245.70p -1.09%

Admiral Group (ADM) 2,672.00p -1.07%

Entain (ENT) 776.80p -1.04%

FTSE 250 - Risers

Trustpilot Group (TRST) 192.80p 2.88%

Moneysupermarket.com Group (MONY) 223.20p 2.20%

Rathbones Group (RAT) 1,684.00p 2.18%

RHI Magnesita N.V. (DI) (RHIM) 3,690.00p 2.07%

SDCL Energy Efficiency Income Trust (SEIT) 60.20p 2.03%

Future (FUTR) 681.00p 2.02%

Abrdn (ABDN) 149.20p 2.02%

NCC Group (NCC) 135.40p 1.96%

UK Commercial Property Reit Limited (UKCM) 68.50p 1.93%

Vistry Group (VTY) 1,224.00p 1.92%

FTSE 250 - Fallers

Hiscox Limited (DI) (HSX) 1,160.00p -4.68%

CMC Markets (CMCX) 248.00p -3.88%

Inchcape (INCH) 765.00p -3.71%

Ithaca Energy (ITH) 114.50p -3.29%

GCP Infrastructure Investments Ltd (GCP) 73.80p -3.28%

IP Group (IPO) 45.45p -3.09%

Grafton Group Ut (CDI) (GFTU) 912.10p -2.80%

Endeavour Mining (EDV) 1,649.00p -2.77%

Ninety One (N91) 168.70p -2.37%

Hochschild Mining (HOC) 149.60p -2.35%