FTSE progressing in session of mixed results

Strong insurance interim result releases in Thursday’s session have cancelled out disappointing numbers from Barclays (LON:BARC) and Unilever (LON:ULVR), pushing the FTSE to make gradual gains on a morning of very mixed results.

Kate Neilson
shareprices.com - Thursday, August 05, 2010

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Barclays poor investment bank results have dragged the share price lower

Barclays was the highest-profile results reporters of the day, following strong banking results from HSBC Holdings (LON:HSBA) and not-so-encouraging news from Standard Chartered (LON:STAN) earlier in the week.

The bank slipped into the red after confirmed a 44 per cent increase in half year profits to £3.9bn, but a decline of 15 per cent in the second quarter by its investment banking business, Barclays Capital. The share price is down more than 2.5 per cent, declining at the rate of almost 10p.

Unilever, the consumer good giant, results narrowly missed sales forecast. However, investors were more concerned about the group’s warning of rising pressure from its rivals. The shares are down just shy of four per cent, declining over 70p.

Despite Unilever’s share price plummet, the stock hasn’t topped the FTSE 100 fallers table. Aerospace electronics firm Cobham (LON:COB) has taken that position after declaring an uncertain outlook for the future despite a two per cent rise in first-half profits. The shares have shed 13p to drop five per cent lower.

Despite the losses, the FTSE 100 is gaining as a whole. Insurers are the biggest provider of the gains with Aviva (LON:AV) and RSA Insurance Group (LON:RSA) both beating profit forecasts for the first half of the year.

Aviva said a cost-cutting programme help towards lifting interim operating profits by 21 per cent. The shares gained in excess of 27p and almost eight per cent.

RSA increased interim dividend by three per cent, pushing shares 3.5 per cent higher.

Also continuing in positive territory is Lloyds Banking Group (LON:LLOY) after reporting strong results in the previous session, and Royal Bank of Scotland (LON:RBS) which will release its interim data announcement on Friday.

The banking giants are up four and 3.5 per cent respectively.

The FTSE 100 has broken back above the 3,400 barrier, adding 18 points at 10:30BST to reach 5,403.64 – a gain of 0.3 per cent.

 

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