London midday: HSBC drags UK stocks lower despite progress in Greece

European markets breathed a sign of relief on Monday as concerns over Greece eased, though UK stocks didn’t join in with the rally after HSBC disappointed with results and commodity stocks weakened.

HSBC had fallen nearly 6% after the global lender missed forecasts with a sharp drop in profits for 2014, while resource shares were tracking commodity prices lower.

The FTSE 100 was trading down 0.4% at 6,888.50 by midday, pulling back after reaching a high of 6,943.61 shortly after the open.

The index briefly surpassed its all-time closing high of 6,930.20 reached in December 1999, but failed to exceed the intraday record of 6,950.60.

“The start of a four-month Greek crisis-free holiday saw the FTSE open at record levels, last seen in 1999, before disappointing HSBC figures halted momentum,” said analyst Alastair McCaig from IG.

The Eurozone approved a four-month extension on Greece’s bailout on Friday, two months shorter than requested, subject to Athens submitting details on the reform and budgetary measures it plans to take later on Monday.

Greek Prime Minister Alexis Tsipras delivered a triumphant speech following the bailout extension, but warned his country faces "a long and difficult road" ahead.

Although Tsipras said his government had "achieved much" by agreeing the deal, it was a move he had previously promised never to make and is viewed by many as the party backing down from its original position.

HSBC sinks after 2014 results

HSBC has reported a 17% drop in pre-tax annual profit to $18.68bn, after the lender was hit by fines for its involvement in the foreign exchange rigging scandal. Chief executive Stuart Gulliver said 2014 was a "challenging year in which we continued to work hard to improve business performance while managing the impact of a higher operating cost base".

Standard Chartered was also trading lower, while peers Barclays, RBS and Lloyds pushed higher.

Primark owner and food ingredients group Associated British Foods rose after saying that underlying trading in the first half has been in line with expectations. While profits for the full year are forecast to fall, first-half adjusted earnings should be flat, it said.

Chilean copper miner Antofagasta declined despite guiding to lower-than-expected cash costs in 2015 on the back of a weaker Chilean peso and lower oil prices. The wider mining sector was also trading lower, including Fresnillo, Anglo American and BHP Billiton, along with oil groups Tullow Oil and Premier Oil.

Distribution group Bunzl impressed with its its full-year results, revealing a 3% increase in pre-tax profit and a 10% hike in the dividend.

Market Movers
techMARK 3,145.90 +0.27%
FTSE 100 6,888.50 -0.39%
FTSE 250 17,078.83 -0.26%

FTSE 100 - Risers
International Consolidated Airlines Group SA (CDI) (IAG) 562.50p +2.09%
London Stock Exchange Group (LSE) 2,500.00p +1.58%
AstraZeneca (AZN) 4,479.00p +1.48%
Pearson (PSON) 1,410.00p +1.37%
Sage Group (SGE) 477.90p +1.34%
Schroders (SDR) 3,061.00p +1.32%
Ashtead Group (AHT) 1,144.00p +1.24%
Bunzl (BNZL) 1,952.00p +1.24%
G4S (GFS) 287.30p +1.20%
Lloyds Banking Group (LLOY) 78.90p +1.18%

FTSE 100 - Fallers
HSBC Holdings (HSBA) 570.00p -5.82%
Tullow Oil (TLW) 390.20p -4.20%
Standard Chartered (STAN) 934.50p -4.01%
Anglo American (AAL) 1,205.00p -3.33%
Weir Group (WEIR) 1,861.00p -2.62%
Randgold Resources Ltd. (RRS) 4,893.00p -2.43%
Fresnillo (FRES) 807.00p -2.42%
Antofagasta (ANTO) 736.00p -2.32%
BHP Billiton (BLT) 1,546.50p -2.18%
Intertek Group (ITRK) 2,496.00p -2.00%

FTSE 250 - Risers
Smith (DS) (SMDS) 359.80p +3.63%
Dechra Pharmaceuticals (DPH) 940.00p +3.41%
Bank of Georgia Holdings (BGEO) 1,948.00p +2.53%
Pace (PIC) 331.80p +1.78%
Melrose Industries (MRO) 298.50p +1.64%
ICAP (IAP) 523.00p +1.45%
Greggs (GRG) 863.50p +1.29%
Marston's (MARS) 151.20p +1.27%
Cobham (COB) 345.50p +1.23%
Hikma Pharmaceuticals (HIK) 2,524.00p +1.12%

FTSE 250 - Fallers
Ladbrokes (LAD) 112.90p -7.46%
Premier Oil (PMO) 169.00p -4.68%
Hunting (HTG) 465.10p -4.34%
Soco International (SIA) 277.90p -4.07%
Polymetal International (POLY) 573.50p -3.94%
Acacia Mining (ACA) 271.90p -3.92%
Indivior (INDV) 162.00p -3.86%
Computacenter (CCC) 706.00p -3.81%
Ophir Energy (OPHR) 138.60p -3.28%
AL Noor Hospitals Group (ANH) 968.50p -3.15%