FTSE 100 movers: HSBC down, Micro Focus up
HSBC was a heavy weight around the FTSE 100's neck on Tuesday, while Ocado made a late rally.
HSBC, the Footsie's largest company by market value, posted a 1.0% drop in adjusted net profits for the fourth quarter to $3.39bn, falling well short of a consensus estimate for $4.4bn. That was despite a 5.0% rise in adjusted revenues to $12.56bn, which was also short of expectations. Fellow Asia-focused banking giant Standard Chartered was also knocked lower.
Morgan Stanley analysts said the earnings "were a big miss" against forecasts, with revenues coming in lower than consensus as market-related income was weak, costs higher, provisions higher and the common equity tier-1 capital down 30 basis points.
While management bank said January 2019 was ahead of plan on revenues and reiterated guidance for positive jaws in 2019, "given the 4Q18 miss, we think it is unlikely the market will have confidence in this guidance", the analysts said.
Elsewhere, bookmakers, including Ladbrokes owner GVC, Paddy Power Betfair and William Hill were all in the red.
News on the day included reports expecting a final review from the Irish government of a proposed bookmakers’ turnover tax hike, which would effectively double the tax that bookmakers are obliged to pay to 2%.
Micro Focus lead the risers as shares in the software company continued their recovery from last year's profit warning, helped by better-than-expected final results last week.
Giving a boost on Tuesday was a note from broker Numis, which included 2-3% upgrades to earnings forecasts and 5% upgrades to free cash flow for 2019-2021 and forecasting a $1.6bn return of value post completion of the SUSE disposal, about 300p per share.
Ocado made a late rally into the green after US client Kroger announced that the pair have chosen Central Florida and the Mid-Atlantic US as the two areas that will host their next two joint 'customer fulfillment centres'.
Market Movers
FTSE 100 (UKX) 7,182.38 -0.51%
FTSE 250 (MCX) 19,067.06 -0.31%
techMARK (TASX) 3,535.40 0.04%
FTSE 100 - Risers
Micro Focus International (MCRO) 1,808.00p 3.40%
Coca-Cola HBC AG (CDI) (CCH) 2,635.00p 2.77%
TUI AG Reg Shs (DI) (TUI) 848.80p 2.76%
Fresnillo (FRES) 998.20p 1.86%
Tesco (TSCO) 227.10p 1.70%
United Utilities Group (UU.) 843.00p 1.52%
Associated British Foods (ABF) 2,352.00p 1.47%
Antofagasta (ANTO) 890.60p 1.41%
Centrica (CNA) 139.35p 1.38%
Carnival (CCL) 4,347.00p 1.38%
FTSE 100 - Fallers
HSBC Holdings (HSBA) 634.50p -4.40%
GVC Holdings (GVC) 611.50p -2.94%
Melrose Industries (MRO) 168.10p -2.15%
Standard Chartered (STAN) 616.00p -1.99%
St James's Place (STJ) 931.00p -1.77%
BAE Systems (BA.) 516.51p -1.58%
Ferguson (FERG) 5,369.00p -1.56%
Reckitt Benckiser Group (RB.) 6,199.00p -1.54%
Wood Group (John) (WG.) 514.80p -1.53%
Rentokil Initial (RTO) 348.80p -1.44%
FTSE 250 - Risers
Greggs (GRG) 1,754.00p 9.49%
Cobham (COB) 120.55p 4.55%
FirstGroup (FGP) 95.65p 4.54%
Dairy Crest Group (DCG) 505.00p 3.82%
Galliford Try (GFRD) 705.50p 2.84%
Polypipe Group (PLP) 410.00p 2.65%
Centamin (DI) (CEY) 127.15p 2.37%
Pennon Group (PNN) 782.60p 2.09%
JD Sports Fashion (JD.) 477.10p 2.03%
Ferrexpo (FXPO) 268.10p 1.94%
FTSE 250 - Fallers
Plus500 Ltd (DI) (PLUS) 706.00p -12.46%
Indivior (INDV) 108.75p -8.07%
Playtech (PTEC) 362.85p -5.48%
FDM Group (Holdings) (FDM) 833.00p -4.03%
IP Group (IPO) 105.40p -3.30%
Pagegroup (PAGE) 449.00p -3.23%
Rank Group (RNK) 161.80p -3.23%
Metro Bank (MTRO) 1,320.00p -3.15%
Mediclinic International (MDC) 309.60p -3.13%
Restaurant Group (RTN) 131.02p -3.09%