Financial stocks sink FTSE 100

The FTSE 100 was flat at 6,997 as financial stocks traded lower following RBS’s (RBS) third quarter loss.

Prudential (PRU) traded 2% lower, while HSBC (HSBA) and Old Mutual (OML) experienced smaller declines.

Shares in big oil companies BP (BP.) and Royal Dutch Shell (RDSA) also fell as oil prices continued to slide.

West Texas Intermediate (WTI) crude oil slid 0.4% to $49.52 and Brent crude oil retreated 0.3% to $50.29 per barrel, respectively.

Gold bounced back from earlier falls, gaining 0.4% to $1,273 per ounce and copper rallied 0.9% to $4,806 per tonne.

In the US, consumer confidence fell from 87.9 in September to 87.2 this month, according to the University of Michigan’s revised survey.

FTSE 100 RISERS AND FALLERS

Royal Bank of Scotland (RBS) fell 1.2% to 194p as it posts a third quarter loss at the headline level, obscuring that adjusted operating profit was £1.3bn, up from £1.1bn the year before.

British Airways owner International Consolidated Airlines (IAG) is one of the few blue chip risers, gaining 6% to 438.2p on solid third quarter earnings and new profit guidance for 2016. Chief executive Willie Walsh said the business expects to deliver a 2016 operating profit of around £2.2bn.

FTSE 250 RISERS AND FALLERS

Aerospace and defence engineer Senior (SNR) was flat after analysts at Berenberg reassessed earnings estimates following a profit warning this month. Double digit downgrades across the next three years caused earnings per share estimates to fall to 14.2p in the year to 31 December 2016 and 15.2p and 18p for the two years after.

Chemicals company Elementis (ELM) reassured investors that its full year earnings per share will meet expectations, despite challenging conditions in its chromium division.

Shares in online delivery system Just Eat (JE.) fattened 5.8% to 536p as investment bank Berenberg believes it is well positioned to take advantage of the online transition of takeaways.

Electronic distributor Electrocomponents (ECM) sparked 4.7% higher to 381.2p after investment bank Liberum recommended ‘buy’ with a 420p price target.

SMALL CAP RISERS AND FALLERS

Mayan Energy (MYN) raised £1.25m in a discounted shares placing, which will be used to start oil and gas production from four re-entry wells.

Shares in Kazakstan-based Roxi Petroleum (RXP) jumped 10.5% to 10.6p after announcing oil-bearing intervals at Well A6 was larger than those previously identified at Deep Wells A5.

Tethys Petroleum (TPL) has failed to raise funding, triggering a share price crash of 35%.

Energy company Independent Oil & Gas (IOG) acquired Oyster Petroleum, a subsidiary of Verus Petroleum. Oyster held the Southern North Sea licences containing the Vulcan East, Vulcan North West and Vulcan South fields.

Shares in premium drinks minnow Distil (DIS) soured 11% despite encouraging half year results. The Blavod black vodka owner reported 26% top line growth and a 26% reduction in operating losses, with revenue driven by a growing number of stockists across all trade channels.

Story provided by StockMarketWire.com

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