FTSE 100 movers: NatWest surges after results; Rightmove edges down
London’s FTSE 100 was up 0.9% at 8,262.14 in afternoon trade on Friday.
NatWest surged to the top of the index as it lifted its full-year guidance for total income to around £14bn from between £13bn and £13.5bn previously. The bank also said that return on tangible equity was set be above 14%, which is up from previous guidance of 12%.
Richard Hunter, head of markets at Interactive Investor, said: "Overall, this is a highly reassuring update which has received a very warm welcome in opening exchanges. The share price bounce adds to an increase of 35% over the last year, as compared to a gain of 6.6% for the wider FTSE 100, and is further evidence of the momentum which propelled the price by 55% in the last six months alone.
"NatWest has delivered an outcome which could mean that it regains its spot as the preferred play on the sector, recently being edged out by Barclays, with a market consensus which comes in at a comfortable buy."
IMI gained as it reported continued strategic progress and a robust financial performance in its first half, with growth in organic revenue and profits.
Segro fell even as it reported a 14.6% jump in first-half adjusted pre-tax profit and said it had continued to perform well.
LLoyds Banking Group took a hit after RBC Capital Markets downgraded it to ‘sector perform’ from ‘outperform’ after the shares hit its 60p price target.
RBC said that trading at around 1x 1 year-forward TBV, Lloyds now looks expensive relative to peers, and it believes that the re-rating story will be much tougher from here.
Real estate portal operator Rightmove edged lower despite saying that both revenue and operating profits had grown in the six months ended 30 June, driven by continued demand from agents and new home developers.
FTSE 100 - Risers
NATWEST GROUP (NWG) 357.70p 5.80%
Anglo American (AAL) 2,373.00p 4.77%
Intertek Group (ITRK) 4,986.00p 3.66%
JD Sports Fashion (JD.) 123.00p 3.10%
Burberry Group (BRBY) 739.20p 3.07%
Airtel Africa (AAF) 109.90p 2.81%
IMI (IMI) 1,850.00p 2.66%
Diploma (DPLM) 4,316.00p 2.18%
Experian (EXPN) 3,571.00p 2.12%
Melrose Industries (MRO) 568.60p 1.97%
FTSE 100 - Fallers
Pershing Square Holdings Ltd NPV (PSH) 3,732.00p -2.30%
SEGRO (SGRO) 886.80p -2.25%
Lloyds Banking Group (LLOY) 59.68p -1.58%
InterContinental Hotels Group (IHG) 7,896.00p -1.25%
Smurfit Westrock (DI) (SWR) 3,697.00p -0.99%
Mondi (MNDI) 1,537.50p -0.74%
Imperial Brands (IMB) 2,138.00p -0.65%
Rightmove (RMV) 566.60p -0.25%
Auto Trader Group (AUTO) 792.60p -0.18%
Fresnillo (FRES) 581.00p -0.17%