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FTSE 100: Barclays, HSBC and Lloyds recall losses as Ocado soars
from Tuesday 25 July 2023
by cityam
LONDON’sFTSE 100 retraced early losses yesterday to close in the black, driven higher by Ocado surging after it settled a dispute over its warehouse technology.
The capital’s premier index climbed 0.19 per cent to 7,678.60 points, while the domestically-focused mid-cap FTSE 250 index, which is more aligned with the health of the UK economy, fell 0.29 per cent to 19,144.98 points.
Gains on the City’s top index were initially hobbled by the UK’s largest listed lenders taking a tumble due to investors fretting over whether a bumper profit round in their upcoming earnings could spark a political backlash.
Barclays, HSBC and Lloyds were hovering around the lower end of the FTSE 100 during opening exchanges, before regaining ground.
Ocado shot up to the top of the FTSE 100, climbing over 14 per cent after it announced yesterday it had settled its three-year spat with Autostore over warehouse technology ownership.
The online supermarket’s share price, which had been battered after the pandemic due to Brits heading back to physical supermarkets, is now up over 20 per cent so far this year.
Its gains were supported by telecoms giant Vodafone advancing just over four per cent after it said income climbed around six per cent in its UK business in the latest quarter.
Traders are eyeing a busy week of corporate and economic announcements, spearheaded by the US Federal Reserve’s expected final interest rate rise on Wednesday. The central bank is tipped to lift borrowing costs 25 basis points to a range of 5.25 per cent and 5.5 per cent.
Cruise line Carnival was rated an ‘add’ by analysts at Peel Hunt, after its first quarter results showed occupancy “100 per cent or higher”. The Florida-based firm also said 2023 pricing was around six per cent higher than 2019 levels. “Carnival’s share price, which was 700p in May, has rallied on upgrades. There is upgrade potential but the level of debt challenges further progress,” analysts said.
Analysts at Peel Hunt rated Moneysupermarket.com an ‘add’ after it reported revenues of £213.8m, up 11 per cent year on year. The company raised its profit outlook for the year as the group was boosted by its insurance arm. “This is a strong set of results. On our initial estimates, we expect a two per cent upgrade on ebitda,” analysts said.
