FTSE 100 movers: HSBC slumps on results; United Utilities boosted by JPM note
London’s FTSE 100 was down 0.8% at 7,377.20 in afternoon trade on Tuesday amid worries about the impact of the coronavirus, with HSBC pacing the decline.
HSBC was under the cosh after saying it would cut about 35,000 jobs in a radical business overhaul, as the bank reported a one-third fall in annual profit and wrote down more than $7bn (£5.4bn) of assets.
Miners were weaker amid worries about the impact of the coronavirus, with Glencore, BHP, Antofagasta and Anglo American all lower, while Russian steelmaker Evraz also fell.
Glencore was on the back foot after saying it swung to a net loss of $404m from a profit of $3.41bn in 2018, as it took a hit from $2.8bn of impairment charges. Adjusted earnings before interest, tax, depreciation and amortisation fell 26% to $11.6bn, but this was still ahead of analysts’ expectations of $11.06bn.
BHP was also in focus as it said first-half earnings surged 29% on the back of higher iron ore prices as the dividend payout was tempered by short term caution over the coronavirus.
Luxury fashion brand Burberry - which has big exposure to China - was also on the back foot.
Bucking the trend, United Utilities and Severn Trent got a boost at JPMorgan said it was upgrading its UK water estimates. The bank upgraded Severn to ‘neutral’ from ‘underweight’ and maintained its preference for overweight-rated UU. JPM said it sees "sector valuations continuing to benefit from improved cash flow profile, dividend security and M&A speculation".
Elsewhere, Betfair and Paddy Power operator Flutter Entertainment was on the rise as it said its merger with Canadian poker company The Stars Group Inc has been informally approved by the Australian Competition and Consumer Commission.
FTSE 100 - Risers
NMC Health (NMC) 837.60p 4.70%
United Utilities Group (UU.) 1,042.00p 3.12%
AstraZeneca (AZN) 7,542.00p 2.24%
Hikma Pharmaceuticals (HIK) 1,921.50p 2.07%
Flutter Entertainment (FLTR) 8,658.00p 1.55%
SEGRO (SGRO) 920.20p 1.50%
Severn Trent (SVT) 2,654.00p 1.45%
Polymetal International (POLY) 1,283.50p 1.38%
Rentokil Initial (RTO) 496.40p 0.87%
Berkeley Group Holdings (The) (BKG) 5,382.00p 0.86%
FTSE 100 - Fallers
HSBC Holdings (HSBA) 555.40p -5.98%
Evraz (EVR) 374.70p -3.45%
Auto Trader Group (AUTO) 582.80p -3.32%
Glencore (GLEN) 228.90p -3.27%
TUI AG Reg Shs (DI) (TUI) 853.00p -3.07%
Smurfit Kappa Group (SKG) 2,786.00p -2.93%
Antofagasta (ANTO) 855.20p -2.51%
Anglo American (AAL) 2,051.00p -2.50%
Burberry Group (BRBY) 1,957.00p -2.44%
BHP Group (BHP) 1,652.40p -2.32%