FTSE 100 movers: GKN and StanChart keep market in red

After a strong showing on Monday, the FTSE 100 was in the red mid-afternoon on Tuesday, down 31.34 points (0.52%) to 6,006.39.

GKN led the fallers despite posting a steady set of results, reporting growth in sales and earnings across most of its operations.

Sales at the firm increased 4% through the year to 31 December to £7.23bn on a reported basis, from £6.98bn.

On a management basis it increased 3% to £7.69bn, with the board citing good growth in Automotive and Aerospace, though Land Systems was down in what it called a tough market.

The company's trading margin remained unchanged at 9.2%, excluding the recently-acquired Fokker Technologies, with a 10.9% increase in reported profit before tax to £245m, from £221m.

Profit before tax increased marginally on a management basis to £603m, from £601m.

"GKN continued to make progress in 2015 and delivered on our expectations," said GKN chief executive Nigel Stein.

Standard Chartered shares were also hit after it reported on a woeful year, with the company completely destroying 2014's $5.2bn profit before tax, with a $1.5bn loss.

The bank saw underlying profit before tax dive 84% during the year to $0.8bn (£0.57bn), with the board blaming 'challenging market conditions'.

Underlying operating income was down 15% to $15.4bn.

Standard Chartered's board broke that decline down into four segments. It blamed one-quarter on the lower exchange rates against the US dollar; another quarter on business exits, disposals and de-risking; a third quarter on lower commodity prices and mark-to-market valuations; and a final quarter on lower levels of business activity.

The London-based bank saw underlying operating costs drop 7% to $9bn, though its underlying loan impairment of $4bn represented an increase of 87%.

Investors also weren’t too pleased with BHP Billiton, absorbing a half-year loss of $5.67bn and slicing its dividend deeper than most analysts predicted.

The mining company also adopted a new more cautious payout policy as it hunkered down for what it believes will be a prolonged period of low and volatile commodity markets.

The Anglo-Australian colossus also cut its capital and exploration spending by 40% to $3.6bn, which combined to help keep its half-time net debt at $25.9bn in line with consensus forecasts for the six months to 31 December.

In line with a new dividend policy designed to protect the balance sheet, and net cash flow shrinking 45% to $5.3bn, BHP chopped its interim payout by almost three quarters to 16 cents from 62 cents a year before.

The consensus of analyst forecasts pointed to a 35 cents payout.

On the other side of the coin, investors were excited about London Stock Exchange Group confirming reports it is in discussions with Deutsche Boerse about a potential merger of equals of the two businesses.

The announcement followed a Reuters report citing a person familiar with the matter as saying the talks are at an early stage.

LSE said the potential deal would be structured as an all-share merger of equals under a new holding company.

Under the terms of the potential merger, LSE shareholders would receive 0.4421 new shares in exchange for each LSE share and Deutsche Boerse holders would get one new share in exchange for each DB share.

This would mean Deutsche Boerse shareholders would hold 54.4% while LSE shareholders would have a 45.6% stake in the combined group.

Persimmon shares were also up after it increased its full year underlying profit before tax by 34% to £637.8m.

The housebuilder said on Tuesday revenue for the year to 31 December 2015 had also risen 13% to £2.9bn.

That was driven by an 8% increase in legal completions rising to 14,572, and a 4.5% increase in the average selling price to £199,127.

The company also commented that four years into its nine and a half year long term plan, its performance is significantly ahead of original expectations.

FTSE 100 - Risers

London Stock Exchange Group (LSE) 2,709.00p 17.12%
Persimmon (PSN) 2,070.00p 4.92%
InterContinental Hotels Group (IHG) 2,549.00p 3.87%
Provident Financial (PFG) 3,288.00p 2.78%
Rolls-Royce Holdings (RR.) 673.00p 2.20%
International Consolidated Airlines Group SA (CDI) (IAG) 550.00p 2.14%
Sports Direct International (SPD) 406.30p 1.73%
Barratt Developments (BDEV) 568.50p 1.52%
Taylor Wimpey (TW.) 177.50p 1.43%
HSBC Holdings (HSBA) 451.75p 1.31%

FTSE 100 - Fallers

GKN (GKN) 277.30p -4.02%
Standard Chartered (STAN) 420.40p -3.64%
BHP Billiton (BLT) 766.30p -3.61%
Pearson (PSON) 797.00p -2.69%
Intertek Group (ITRK) 2,841.00p -2.57%
Antofagasta (ANTO) 504.50p -2.51%
Inmarsat (ISAT) 991.50p -2.51%
Anglo American (AAL) 473.40p -2.14%
Tesco (TSCO) 180.75p -2.11%
Centrica (CNA) 212.30p -1.80%