BP and Shire results hit FTSE

The blue chip index was dragged into the red as BP (BP.) reported a decline in underlying profit and Shire (SHP) revealed a slump in its haemophilia product sales.

Royal Dutch Shell (RDSB) was unable to lift the FTSE higher despite posting its first quarter sales increase in three years. The stock gained 4%.

The UK’s manufacturing sector maintained a solid rate of expansion despite Markit’s purchasing managers’ index dipping from 55.5 in September to 54.3 in October. Upturns in output, new orders and employment were noted.

West Texas Intermediate (WTI) crude oil fell 0.9% to $46.43 and Brent crude oil was 0.9% lower at $48.18 per barrel, respectively.

Gold jumped by more than 1% as markets started to fear a Trump victory in the forthcoming US elections. Copper rallied nearly 1% to $4,894 per tonne.

FTSE 100 RISERS AND FALLERS

Shire (SHP) needed a shot in the arm following a slump in haemophilia product sales and higher integration costs than expected for US-based Baxalta. The shares traded 2.6% lower at £45.27.

Shares in rival oil company BP (BP.) slid 4.5% on a year-on-year decline in third quarter profit. This was caused by ‘a weaker price and margin environment’ as well as higher exploration write-offs and rig cancellation charges in the upstream business.

Standard Chartered (STAN) CEO Bill Winters said income and profit levels were ‘not yet acceptable’, pushing its share price 5.4% lower to 673.3p.

FTSE 250 RISERS AND FALLERS

Price comparison site Moneysupermarket (MONY) was marked up 10% to 287.9p after reporting a strong third quarter performance, with sales up 12%, as it remained on track for a record year.

Specialist engineer Weir (WEIR) traded 2.3% lower on a full year profit warning. A muted third quarter performance reflected a low point in the North American oil and gas market and tougher conditions in the Middle East.

Bus and rail group Go-Ahead (GOG) was flat despite passenger revenue being hit by strikes on the Southern network, which is part of its 65%-owned Govia Thameslink Railway. The transport group said it was on track to meet full year forecasts.

Virgin Money (VM.) said it expected no material impact from Brexit, but noted the UK economy’s outlook was unclear. Shares dipped 2.7% as investors were concerned.

SMALL CAP RISERS AND FALLERS

Northern Petroleum (NOP) was one of the biggest small cap risers as the stock traded 16.2% higher on total proven plus probable reserves of 1.9 million barrels of oil equivalent at its development and production assets in Canada.

Shares in museum exhibit design firm Paragon Entertainment (PEL) soared 29% after it said trading was ahead of expectations thanks to a tighter focus on its ‘design and build’ business.

Franchise Brands (FRAN) jumped 12.4% to 59p after making its first acquisition since floating in August. It bought dog sitting franchise Barking Mad.

Maintenance firm Bilby (BILB) issued a profit warning, blaming a ‘change in processes’ from a major public sector customer. This caused delays in expected work and triggered a 10.4% drop in the share price to 71.7p.

Gambling group Sportech (SPO) fell into negative territory as discussions to sell The Football Pools for £97.25m were terminated.

Investors toasted drinks distributor Conviviality (CVR) after a strong first half performance. Sales were up 211% at £783m in the half year to October, reflecting organic growth and a boost from a trio of acquisitions spearheaded by drinks wholesaler Matthew Clark.

Story provided by StockMarketWire.com