By Patrick Munnelly, Market Strategist, Tickmill
The UK’s FTSE 100 saw a small advance of 0.3% on Wednesday.
Rio Tinto LON:RIO investors cheered the announcement that the business welcomed James “Joc” O’Rourke as a non-executive director, effective from October 25, 2023. Mr. O’Rourke, a dual Canadian/Australian national, will be up for election at the company’s annual general meetings in 2024. The announcement placed Rio Tinto back at the top of the blue chip index, gaining on yesterday’s advance by a further 1.9%.
With over 25 years of experience in the mining and minerals industry, Mr. O’Rourke has served as the CEO of The Mosaic Company, the world’s foremost integrated producer and marketer of concentrated phosphate and potash, since 2015.
Lloyds Banking Group reverses early losses
Lloyds Banking Group LON:LLOY managed to reverse its early losses and trade closer to the top of the blue-chip index by the close. The bank’s shares were initially down 1.5% before turning green to gain over 2% on the session.
In its third-quarter report, Lloyds revealed a net interest margin of 3.08%, a 6 basis point decrease sequentially. Despite this, the bank affirmed its outlook and posted profit growth that was broadly in line with market expectations.
However, customer deposits at the end of the quarter experienced a 1% drop quarter-over-quarter, totaling £470.3 billion ($572.07 billion).
Rising prices and upward pressure on wages have been pushing banks’ costs higher, and Lloyds reported operating costs of £6.7 billion, marking a 5% year-to-date increase due to inflation and strategic investments.
Lloyds did not make any announcements regarding dividend or share buybacks. The bank’s shares have seen a decline of over 10% year-to-date.
Reckitt Benckiser sales fall short of expectations
On the negative side of the ledger Reckitt Benckiser LON:RKT, the manufacturer of Dettol, saw its shares fall by over 4% as it reported quarterly sales that fell short of expectations. The stock was among the top percentage losers on London’s blue-chip index.
In the third quarter, Reckitt Benckiser’s like-for-like net sales increased by 3.4%, which lagged behind consensus estimates of 3.7%.
The company reported a 1.6% decline in volumes in its hygiene and health businesses combined, as consumers hesitated to make purchases due to higher product prices.
The CEO commented, “We are firmly on track to deliver our full-year targets.” The company also announced a £1 billion ($1.22 billion) share buyback program. As of the last close, the stock had risen by 3% year-to-date.
Reckitt was pipped to the bottom spot by a near 10% decline in online grocer Ocado LON:OCDO
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