FTSE 100 movers: Banks gain while miners drop on stronger pound

The FTSE 100 index fell by 0.47% to 6,813.04 in late afternoon trade.

Royal Bank of Scotland rose after the High Court ruled that Theresa May did not have the authority to invoke Article 50 without Parliament’s majority vote. Equity Analyst at Hargreaves Lansdown, Nicholas Hyett, said the strength in sterling helped the bank “assuage fears about the size of dollar-denominated US conduct fines”.The stock also got a lift from solid results from European peers Societe Generale and ING.

Biopharmaceutical company Shire got a boost on Thursday as Bank of America Merrill Lynch added the stock to its ‘Europe 1’ list with a ‘buy’ rating and 6,970p price target, saying the shares are too cheap. Citigroup was also pushing the stock ahead of the company’s capital markets day, saying the risk/reward is compelling.

Morgan Stanley upgraded Dixons Carphone to ‘equalweight’ from ‘underweight’ and kept its price target at 315p. “Dixons Carphone has derated significantly in recent months and consensus is no longer predicting much earnings growth in outer years. We believe, therefore, that the risk-reward trade off has become much more balanced, so upgrade to Equalweight,” said the analysts.

Hyett also attributed the rise to the boost in sterling. “Electronic goods are almost universally imported, so lower sterling threatens to dramatically increase the cost to UK consumers. Investors have been worried that would put many off spending.”

Randgold Resources shares on the other hand fell despite positive results in its third quarter keeping it on track to meet its 2016 guidance, as metal prices declined.

Pharmaceutical giant GlaxoSmithKline was weaker as its stock went ex dividend.

Risers

Royal Bank of Scotland Group (RBS) 191.60p 4.87%
Dixons Carphone (DC.) 341.30p 4.56%
British Land Company (BLND) 610.50p 4.36%
Marks & Spencer Group (MKS) 353.00p 3.73%
Whitbread (WTB) 3,700.00p 3.29%
Land Securities Group (LAND) 1,015.00p 3.26%
easyJet (EZJ) 993.00p 2.58%
International Consolidated Airlines Group SA (CDI) (IAG) 452.50p 2.51%
Shire Plc (SHP) 4,534.00p 2.31%
Standard Life (SL.) 342.20p 2.18%