FTSE 100 stocks dug themselves out of a hole and closed Friday higher - within a whisker of reclaiming the 7,000 level – after British Airways owner IAG’s shares soared after its latest results.
The blue-chip ticker closed up 0.1% at 6,996 and 25 points off where it closed last Friday.
IAG, which also owns Spain’s Iberia, reported a 4% dip in profits but it sweetened the blow with a 10% interim dividend rise. Shares closed up 5.9% at 438p.
Another top gainer was EasyJet (LON:EZJ) up 3.4% to 953p, catching the tailwind of the IAG gains.
But it was dire for Shire (LON:SHP), dominating the losers board with a 3.4% drop to 4782p on no specific news.
Meanwhile, bank RBS (LON:RBS) reported a loss of £469mln for the three months ending in September, the bank announced on Friday, blaming legal and restructuring costs for the loss.
The result compares with a profit of £940mln in the same period last year, which included the £1.1 billion sale of its US unit Citizens.
But RBS also said it was no longer possible to sell off the corporate bank Williams & Glyn by December 2017 – breaking what was a key promise of its original £46bn bailout deal with the government in 2008.
RBS closed down 1.2% at 194p.
The FTSE 250 index of mid-caps closed up 0.4% at 17,644 and led by Elementis plc (LON:ELM), up 11.1% to 238.4p.
Despite a less-than-stellar earnings result, the chemicals company’s sales for speciality products rose in the third quarter but the chromium business remained "challenging", while overall earnings for the year are anticipated to be in line with market expectations.
The FTSE AIM 100 Index closed down 0.08% at 3947 while the FTSE AIM All-Share Index ended flat at 823.
Across the London bourse, 32% of stocks gained and 29% lost. Aurum Mining (LON:AUR) was the top riser of 30% to 3.9p and the top loser was Tethys (LON:TPL) down 38.5% to 1p.
Midsession
FTSE 100 makes gains but still lower
US economy grows more than expected
IAG flies to Footsie podium
FTSE 100 is still lower but edging closer to that psychologically significant 7,000 level.
It is down around 11 at 6,975 with IAG (LON:IAG) still far and away the top dog.
Shares in the British Airways owner are up over 6% to 438.3p as its third quarter and nine month figures appeared to impress the market.
The top loser was drugs giant Shire (LON:SHP), which saw shares slip over 3% to stand at 4,791.5p, while state-owned lender RBS (LON:RBS) was also lower - down 1.58% to 193.20p as its results showed legacy issues still blighting the group.
Meanwhile, stateside, latest GDP figures showed the economy growing more than expected in the September quarter as foreign trade, among other factors, made up for a slowdown in household spending.
10:18 ... Roxi Petroleum among Friday’s small cap movers
AIM quoted Roxi Petroleum Plc (LON:RXP) was among Friday morning’s standout stock, rising 19.5% to 11.5p, after a positive update from a deep well in Kazakhstan.
The well, referred to as A6, was confirmed to host some 127 metres of oil bearing intervals which means it is larger than seen in the prior deep well.
FRIDAY’S RISERS & FALLERS
In the FTSE 100, banking shares were back in focus, with Royal Bank of Scotland Group Plc (LON:RBS) down 1.4% to 193.4p following its third quarter results – as it warned it won’t hit cost and return targets to the timetable set out two years ago.
International Consolidated Airlines Group (LON:IAG), meanwhile, rose more than 3% to 426.70p as its results weren’t as bad as feared.
9.04am ... Property sector on sale
The FTSE 100 fell 27 points in early trade to 6,959.47, dragged lower by the property stocks.
Shopping centre owner Intu PLC (LON:INTU), and mainstream developers British Land PLC (LON:BLAND) and Land Securities PLC (LON:LAND) were all on offer early on.
British Airways owner International Consolidated Airlines Group PLC (LON:IAG) was flying higher as investor heaved a sigh of relief. Its quarterly figures weren't quite as bad as they could have been.
7am ... FTSE 100 set to open lower
FTSE 100 is poised to open lower on Friday after a weak session in the US and choppy Asian trading.
The blue chip index closed 0.41% up, or around 28 points, to 6,986 yesterday as latest gross domestic product (GDP) figures showed the UK economy grew by 0.5% in the third quarter, which was better than analysts' forecasts of 0.3%. But it was still a slowdown on the second quarter.
It sent the pound to a one-week high against the dollar and prompted a big sell off in government debt (bonds) in the UK and globally. The FTSE 100 is called by financial spreadbetters to open around ten points lower today.
In the US, the benchmark Dow Jones closed 0.16% down at 18,169, while the S&P500 was 0.3% lower and the tech heavy Nasdaq shed 0.65% down 5,215.
In Asia, the Nikkei 225 index in Japan is ahead by 0.65% to 17,449 at the time of writing, while the Shanghia Composite index is down 0.07% to stand at 3,110.
Oil prices rose last night after Gulf members of the powerful cartel, the Organisation of the Petroleum Exporting Countries (OPEC) reaffirmed to Russia reportedly that it was willing to cut output to the tune of 4%. US crude is 0.08% ahead a US$49.76 a barrel.
Gold is 0.21% ahead at US$1,272 an ounce.
On the corporate front today, we have a first look at big brew mega merger – SAB Miller’s combination with Anheuser-Busch InBev - as the latter posts results.
Liberum rates ABI as a ‘buy’, with a €132 target price that suggests some 15% upside to the brewer’s European quote (presently €115 per share).
For the third quarter, the broker notes consensus expectations of 3.3% organic sales growth and 4.4% earnings growth.
City headlines
'Nissan row as government denies 'secret deal' to support Sunderland factory post-Brexit' - The Telegraph
'Google's Alphabet defies expectations with 20% revenue rise' - The Guardian
'Amazon's share price slumps on disappointing results' - City AM
'Bank of England to shelve fresh rate cut and QE as UK economic growth holds up well after Brexit vote- Thisis Money