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FTSE trades flat as US tech remains under pressure

Tue, 23rd Feb 2021

The FTSE 100 traded flat a little above the 6,600 mark despite US tech stocks tanking for a second day on valuation concerns and as investors grew concerned mounting inflation might prompt interest rate increases. By 4.30pm UK time the S&P 500 was down 0.6% to 3,852.59 and the more tech-biased NASDAQ index was off by 1.4% having earlier lost as much as 3% of its value. The UK unemployment rate rose to 5.1% in the three months through December, as expected, up from 5.0% previously. Banking giant HSBC fell 1% to 427.3p as it reported a 34% drop in annual profit owing to higher credit losses and lower interest rates. HSBC resumed dividends with a 15c per share payout and said it would assume a payout ratio of between 40% and 55% of reported earnings per share. Life insurer Aviva was flat at 374.8p, having sold its French unit to Aema Groupe for €3.2 billion as part of a plan to focus on its UK, Ireland and Canada businesses. The deal covered Aviva's French life, general insurance, and asset management businesses and its 75% stake in UFF5. Hotel chain Intercontinental Hotels surrendered earlier gains to trade 1.4% lower at £52.36, even after it reported a deep annual loss as sales were hammered by the pandemic's impact on the tourism sector. Intercontinental Hotels paid no dividends for 2020, but said it was eyeing a recovery in trading later in the year amid the global rollout of Covid-19 vaccines. Investment manager Standard Life Aberdeen fell 2.2% to 319.1p on news that it would acquire investment platform businesses from insurer Phoenix for £62.5 million, while extending and simplifying their existing relationship. Standard Life Aberdeen also would sell the 'Standard Life' brand to Phoenix during the course of 2021, but pay Phoenix another £32 million in return for it bearing the cost of transferring staff. Frasers, formerly Sport Direct, firmed 1.4% to 466.4p despite warning of a non-cash writedown of more than £100 million. The sportswear and equipment retailer pinned the writedown on the impact of the current lockdown and shift in consumer behaviour to online shopping. Sub-prime lender Non-Standard Finance gained 20.2% to 4.22p, even after it said that it was planning a 'substantial' equity raising to support growth, avoid covenant breaches and address uncertainties about remaining a going concern. Non-Standard Finance said it had commenced planning work on the raising with the support of largest shareholder Alchemy, with a view to completing it in the second quarter of 2021. Story provided by StockMarketWire.com

FTSE 100 Latest
Value6,630.52
Change-20.36