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FTSE 100 lower despite bank rally sparked by HSBC shares buyback | |
(about 4 hours later) | |
(Noon): Weaker commodities and property shares have dragged the FTSE lower, offsetting a rally in banking stocks led by HSBC. | |
The FTSE 100 index is 0.2% lower at 6,630.38 after hitting its lowest since mid-July on Tuesday. | |
HSBC shares are 3.7% higher at 500.80p after the bank surprised investors with a $2.5bn share buyback announcement. | |
That was despite its reporting a 29% fall in pre-tax profits for the six months to the end of June, to $9.7bn. | |
The bank described the weak numbers as a "reasonable performance in the face of considerable uncertainty". | The bank described the weak numbers as a "reasonable performance in the face of considerable uncertainty". |
The announcement follows the sale of its Brazilian division last year. | |
Standard Chartered Bank saw its share price rise 9.38% to 644.90p, despite reporting a 46% fall in pre-tax profits to $1bn (£749m), which it largely attributed to cost-cutting measures amid growing economic uncertainty. | |
Shares in Rio Tinto were down around 1%, also after the global miner reported a 47% slump in first-half profit to its weakest in 12 years. | |
However, losses were limited, as it surprised the market with a higher-than-expected dividend. | |
Property-related stocks also fell on lingering concerns about the pace of economic growth in the UK after the country voted in late June to leave the European Union. | |
Elsewhere, retailer Next reported a rise in overall sales in the three months to the end of July. That led its shares higher by 3.61% to 5,315p | |
Next said sales were 0.3% higher compared with a year earlier, although store sales were down 3.3%. | |
Energy shares were mixed after Ofgem said it would introduce a price cap for energy customers that use pre-pay meters, but stopped short of introducing caps on standard variable energy tariffs. | |
Centrica is 0.73% lower at 232.20p, but SSE is 0.53% higher at 1,511.00p | |
On the currency markets, the pound was 0.02% lower against the dollar at $1.33550 and 0.18% higher against the euro at €1.19230. |