By Patrick Munnelly, Market Analyst, Tickmill
The FTSE 100 is struggling for a second successive session. Investors seemed spooked by banking concerns Stateside with First Republic Bank shares getting slashed again, repeatedly hitting circuit breakers as the shares, already down 90%, have shed a further 50% during Tuesday’s New York session. The index fell 38 points to end the day at 7852.64.
FTSE100 biggest movers
Bucking the banking crisis concerns, UK independent bank Standard Chartered LON:STAN put in stellar earnings with pre tax profits surging by 21% smashing expectations and leading to a 2.1%+ day in the green.
The counter intuitive trade of the day has been homebuilder Persimmon LON:PSN, who announced a 42% drop in new home completions. However, investors took solace from a trading update that suggests there has been incremental improvement since the beginning of 2023. This led to investors support for the stock with the shares popping 4.9% on the day. The upbeat guidance from Persimmon saw support for bedfellows Taylor Wimpey LON:TW. +4.1% and Barratt Developments LON:BDEV up 2.9%+.
On the negative side of the ledger GSK LON:GSK reported an adjusted profit of 37p per share on revenue of £7 billion which marginally exceeded estimates. However, GSK CEO Emma Walmsley has raised concerns regarding a review of EU pharma legislation. This may see pharma firms forced to reallocate investment to alternative jurisdictions. The note of caution led investors to reduce exposure as the shares shed 3.9%.
Spirax-Sarco Engineering LON:SPX sits at the foot of the FTSE today, shedding just over 5%, given investor concerns regarding return on equity, elevated profit retention and future growth opportunities.
