Investing
Banks, miners lead FTSE 100 lower
Global Banking & Finance Review®
Company
By Shristi Achar A
(Reuters) -London’s FTSE 100 fell for the fifth straight day, as a sharp drop in shares of NatWest weighed on the banking sector on Friday, while mining stocks lost ground tracking weaker copper prices.
The blue-chip index was down 0.5%, while the mid-cap FTSE 250 slipped 0.1%, as of 0714 GMT.
Lenders led losses, down 2.2%. NatWest fell 5.9% despite reporting better-than-expected quarterly profit.
“Even though the results are really good … the net interest margin is a bit disappointing,” said Andrew Jones, portfolio manager at Janus Henderson
“People had hoped for a bit more, and they really focus on that for a bank, as interest rates have gone up for the first time in a long time.”
Base metal miners added to the pressure on FTSE 100, down 1.8% and were on track for their biggest weekly drop in a month. [MET/L]
On the bright side, life insurers rose 0.3%, led by a 1.3% rise in Prudential after posting a 30% jump in new business profit.
The FTSE 100 is poised to gain 2.1% for the month despite a volatile week amid a burst of earnings, supported by defensive sectors including pharmaceuticals and consumer staples.
Pearson rose 3.4% after the education group said it was on track to meet its annual guidance, and also deliver 120 million pounds ($150 million) of cost efficiencies this year.
Numis Corp surged 67.2% after Deutsche Bank said it would buy the London-based institutional stockbroker and corporate advisor for about 410 million pounds.
Meanwhile, British businesses were their most optimistic in nearly a year in April, boosted by growing hopes about the economy, according to a Lloyds Bank survey.
(Reporting by Shristi Achar A in Bengaluru; Editing by Sonia Cheema and Nivedita Bhattahacharjee)
The FTSE 100 is a stock market index that represents the 100 largest companies listed on the London Stock Exchange, based on market capitalization.
Interest rates are the amount charged by lenders to borrowers for the use of money, typically expressed as a percentage of the principal.
Corporate profits refer to the earnings of a company after all expenses, taxes, and costs have been deducted from total revenue.
The banking sector encompasses financial institutions that accept deposits, offer loans, and provide various financial services to individuals and businesses.
Mining stocks are shares of companies involved in the extraction of minerals and resources, which can be affected by commodity prices and market demand.
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