London open: Stocks fall as investors wade through earnings

UK stocks declined on Friday as investors sifted through corporate earnings from a batch of FTSE 100-listed companies.

Royal Bank of Scotland’s shares were in the red after reporting a first quarter £968m loss, more than double the loss the same period a year ago. The loss reflected a £1.2bn payment to the UK Treasury to end a golden share agreement that gave the government first dibs on any dividend payments.

“Given the current regulatory environment and a continued era of low interest rates, anyone expecting a speedy turnaround is likely to be waiting a while, however with the shares already near multi year lows expectations are already fairly low, which suggests that the lows of earlier this year at 205p may well be safe for now,” said Michael Hewson, chief market analyst at CMC Markets.

British Airways owner International Consolidated Airlines was also under the cosh after reporting a drop in passenger unit revenue for the first quarter at constant currency.

Education publisher Pearson slumped after posting a 9% drop in revenue at constant exchange rates in the first quarter.

AstraZeneca dropped after reporting a 7% drop in first-quarter earnings at constant currency.

In economic data, UK consumer confidence declined in April, according to GfK’s survey. The sentiment index fell to -3 this month from 0 in March, worse than analysts’ estimates of -1.

Still to come, UK consumer credit and mortgage approvals at 0930 BST, Eurozone inflation and GDP at 1000 BST, US personal income and spending at 1330 BST, University of Michigan’s consumer confidence at 1500 BST and the Baker Hughes US Rig Count at 1800 BST.

Meanwhile, oil prices edged to new 2016 highs on a weak dollar with Brent crude up 0.53% to $48.40 per barrel and West Texas Intermediate up 0.73% to $46.37 per barrel at 0906 BST.

Market Movers

FTSE 100 (UKX) 6,270.82 -0.82%
FTSE 250 (MCX) 16,975.90 -0.53%
techMARK (TASX) 3,072.47 -0.69%

FTSE 100 - Risers

Fresnillo (FRES) 1,108.00p 1.19%
Rio Tinto (RIO) 2,354.50p 1.07%
Randgold Resources Ltd. (RRS) 6,590.00p 1.00%
Anglo American (AAL) 759.50p 0.84%
BT Group (BT.A) 436.70p 0.56%
Direct Line Insurance Group (DLG) 360.90p 0.50%
Sage Group (SGE) 593.50p 0.17%
Tesco (TSCO) 173.50p 0.12%
Glencore (GLEN) 156.60p 0.10%
Paddy Power Betfair (PPB) 9,000.00p 0.06%

FTSE 100 - Fallers

International Consolidated Airlines Group SA (CDI) (IAG) 527.00p -4.36%
Berkeley Group Holdings (The) (BKG) 2,973.00p -3.03%
Royal Bank of Scotland Group (RBS) 239.00p -2.37%
Schroders (SDR) 2,509.00p -2.30%
InterContinental Hotels Group (IHG) 2,731.00p -1.94%
Whitbread (WTB) 3,938.00p -1.84%
HSBC Holdings (HSBA) 458.80p -1.83%
Ashtead Group (AHT) 908.00p -1.78%
Taylor Wimpey (TW.) 184.00p -1.66%
easyJet (EZJ) 1,490.00p -1.65%

FTSE 250 - Risers

Rotork (ROR) 189.80p 5.80%
Centamin (DI) (CEY) 116.10p 3.20%
Weir Group (WEIR) 1,240.00p 2.23%
AO World (AO.) 188.50p 1.89%
Kaz Minerals (KAZ) 175.00p 1.45%
Drax Group (DRX) 328.00p 1.33%
Acacia Mining (ACA) 347.50p 1.28%
Evraz (EVR) 146.00p 0.90%
Polypipe Group (PLP) 298.20p 0.78%
Brewin Dolphin Holdings (BRW) 279.50p 0.68%

FTSE 250 - Fallers

Restaurant Group (RTN) 294.20p -21.40%
Ophir Energy (OPHR) 74.85p -18.55%
Cineworld Group (CINE) 524.50p -3.14%
Cobham (COB) 158.30p -2.94%
Riverstone Energy Limited (RSE) 799.00p -2.56%
Telecom Plus (TEP) 979.00p -2.20%
PayPoint (PAY) 857.00p -2.06%
Jimmy Choo (CHOO) 125.40p -1.88%
Indivior (INDV) 159.00p -1.85%
Worldwide Healthcare Trust (WWH) 1,762.00p -1.84%