FTSE 100 live: No Friday feeling for London index as banks follow Natwest to dip into negative territory
London’s blue chip FTSE 100 index was trading flat, down 16 points at 7,815.94, as banks led the fall in the last day of trade before the May bank holiday.
Despite better than expected profits Natwest shares fell 5.58 per cent.
Michael Hewson chief market analyst at CMC Markets said: “When NatWest reported its full-year results back in February the shares were trading just below their highest levels since May 2018, as concerns over a sharp slowdown in the UK economy receded.”
“The shares have retreated quite a bit since then, touching three-month lows in March, largely due to concerns over whether the strong performance seen in 2022 can be repeated in 2023, while the recent uncertainty around the European banking sector and the fallout over Credit Suisse hasn’t helped.”
“Today’s numbers have done little to justify that caution with a strong set of numbers, not that you’d know it from the market reaction, with the shares sharply lower in early trade, and which is dragging on the wider sector.”
Lloyds Banking Group was also lower ahead of its numbers next week. Ocado was another faller, the online retailer this week announced the closure of its oldest fulfilment centre in Hatfield placing 2,300 jobs at risk.
The FTSE 250, which includes more UK-centric companies, was more positive, was llast up 22 points at 19,270.47.
FTSE 100 risers
Prudential and Smurfit Kappa were among the FTSE 100 risers, up 3.5 per cent and 2.5 per cent respectively.
Prudential said its sales rose 35 per cent to £1.55bn during the three months ending 31 March 2023; it cited increasing cross border traffic from the Chinese Mainland and higher domestic demand in Hong Kong as being a major driver of its growth.
Prudential, which said it is committed to its London stock market listing despite a refocus on Asian and African markets said new business profit rose 30 per cent (26 per cent) to $743m, with 10 out of the 13 life insurance markets in Asia as well as Africa, achieved double-digit growth1 in new business profit
Smurfit Kappa reported said its first-quarter profit rose despite a dip in sales.
The packaging firm said that In the three months to the end of March, its pre-tax profit increased 7 per cent to €339m although revenue fell one per cent lower to €2.99bn.