FTSE 100 movers: BP surges on share buybacks; Entain hit by downgrade
London’s FTSE 100 was up 0.7% at 7,666.34 in afternoon trade on Tuesday.
BP surged to the top of the index as the energy giant announced a $1.75bn share buyback despite a slump in annual profits as oil prices fell during 2023 from the spike caused by Russia's invasion of Ukraine.
Full-year underlying replacement cost profit - the company's preferred earnings measure - halved to $13.8bn from $27.6bn a year earlier. Looking ahead, BP expects first quarter 2024 reported upstream production to be higher compared to the final three months of the 2023.
Russ Mould, investment director at AJ Bell, said: "A big plunge in BP’s profit year-on-year is not really big news. Volatile oil prices will inevitably feed through to the company’s bottom line. It is also worth remembering that last year’s profit represented a record level.
"The fact BP’s latest profit beat expectations makes this a solid start for Murray Auchincloss as its new chief executive. A big share buyback is also helping to get investors on side, as the new boss demonstrates his commitment to returning cash to shareholders."
Prudential rose after Barclays lifted its price target on the overweight-rated shares to 1,640p from 1,610p.
Entain lost ground, however, after Barclays downgraded the Ladbrokes owner to ‘equalweight’ from ‘overweight’ and cut the price target to 1,070p from 1,120p, as it said "the recovery is not straightforward".
"For the stock to work we think it needs Online to return to market growth rates or better and US share to stabilise (and grow)," Barclays said, adding that "neither are a given".
FTSE 100 - Risers
BP (BP.) 479.25p 5.53%
Rolls-Royce Holdings (RR.) 319.80p 3.23%
BAE Systems (BA.) 1,216.00p 3.14%
Kingfisher (KGF) 216.40p 3.00%
Prudential (PRU) 841.60p 2.91%
Weir Group (WEIR) 1,809.50p 2.84%
Antofagasta (ANTO) 1,760.00p 2.30%
HSBC Holdings (HSBA) 631.70p 2.02%
Hikma Pharmaceuticals (HIK) 1,916.00p 1.83%
Smith (DS) (SMDS) 274.40p 1.37%
FTSE 100 - Fallers
BT Group (BT.A) 106.70p -2.82%
Pearson (PSON) 941.80p -2.77%
Entain (ENT) 968.40p -2.16%
Coca-Cola HBC AG (CDI) (CCH) 2,282.00p -1.85%
National Grid (NG.) 1,035.50p -1.10%
Anglo American (AAL) 1,796.40p -0.75%
Severn Trent (SVT) 2,538.00p -0.63%
United Utilities Group (UU.) 1,043.00p -0.62%
Lloyds Banking Group (LLOY) 41.68p -0.50%
Vodafone Group (VOD) 66.03p -0.45%