FTSE 100 movers: HSBC rallies on results; BP gushes lower

London’s FTSE 100 was down 0.7% at 8,229.35 in afternoon trade on Tuesday.

HSBC was the standout performer as it announced another $3bn share buyback and posted better-than-expected third-quarter profits, underpinned by solid performances from the wealth and investment banking units.

In the three months to the end of September, pre-tax profit rose 10% on the same period a year earlier to $8.5bn, versus analysts’ expectations of $7.6bn.

HSBC said revenue increased 5% to $17bn, reflecting higher customer activity in its wealth products, supported by volatile market conditions.

Net interest income fell by $1.6bn to $7.6bn, reflecting reductions due to business disposals, higher interest expense on liabilities and a loss on the early redemption of legacy securities.

HSBC announced a major overhaul last week, saying it would divide its business into eastern and western markets in order to simplify its structure.

Standard Chartered and Prudential also advanced.

Educational publisher Pearson gained as it reiterated its full-year outlook after an uptick in quarterly sales.

Updating on trading, the blue chip said sales rose 4% in the third quarter and by 2% in the year to date. Underlying sales growth, which strips out businesses under strategic review, was 5% and 3% respectively over the two periods.

Driving the uplift was a 6% jump in sales in Pearson’s core assessment and qualifications division, and in workforce skills. Sales strengthened 4% in virtual learning and by 4% in higher education.

BP was under the cosh as it reported a slide in quarterly profits, hit by weaker refining margins, although the decline was not as steep as feared.

Underlying replacement cost profit, a key measure for the oil and gas major, was $2.3bn in the third quarter. That was down on both the second quarter’s $2.8bn, and last year’s $3.3bn.

BP said the results reflected weaker refining margins, a weak oil trading result and lower liquids realisations, although they were partly offset by higher gas realisations.

FTSE 100 - Risers

HSBC Holdings (HSBA) 718.80p 3.86%
Pearson (PSON) 1,102.00p 2.85%
Standard Chartered (STAN) 879.60p 1.59%
Fresnillo (FRES) 764.00p 1.46%
Rentokil Initial (RTO) 384.80p 1.10%
Rio Tinto (RIO) 5,119.00p 0.83%
Antofagasta (ANTO) 1,821.50p 0.80%
Prudential (PRU) 657.00p 0.77%
Anglo American (AAL) 2,481.00p 0.73%
GSK (GSK) 1,460.50p 0.59%

FTSE 100 - Fallers

Airtel Africa (AAF) 103.30p -5.75%
Melrose Industries (MRO) 466.70p -4.09%
BP (BP.) 383.05p -4.02%
JD Sports Fashion (JD.) 128.40p -3.46%
Rolls-Royce Holdings (RR.) 542.00p -3.28%
easyJet (EZJ) 504.60p -3.04%
International Consolidated Airlines Group SA (CDI) (IAG) 209.90p -2.51%
Vodafone Group (VOD) 72.24p -2.25%
Admiral Group (ADM) 2,535.00p -2.24%
Diploma (DPLM) 4,284.00p -2.19%