FTSE Starts The Week With Modest Gains Ahead Of Month End -

FTSE Starts The Week With Modest Gains Ahead Of Month End

Oct 30, 2023Jeremy ParkinsonFinance0

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On Monday the FTSE 100 saw a slight increase. This rise was primarily driven by gains in mining stocks, which are closely linked to the commodities market. The commodity-focused FTSE 100 experienced a gain of 0.85% during the trading session. Base metal prices witnessed an increase, with most of them rising, due to stimulus measures introduced by China, the world’s largest consumer of these metals. As a result, the industrial metal miners index surged by 1.1%, reflecting improved market sentiment.HSBC’s shares declined by 2.6% following the release of its third-quarter financial results, which showed a smaller-than-expected increase in profits. During the third quarter, the bank reported pre-tax profits of $7.7 billion, compared to $3.2 billion during the same period in the previous year. Despite this significant year-over-year improvement, the reported profit fell short of consensus expectations, which had projected earnings of $8.1 billion. Additionally, HSBC announced a share buyback program worth $3 billion. The combination of lower-than-expected profits and the buyback program likely influenced the market’s reaction, leading to a decline in HSBC’s stock price. The Bank was however pipped to the bottom spot of the blue chip indexby Ocado whose value dropped by 4.4%.On the positive side of the ledger London-listed shares of telecom service provider Airtel Africa experienced a 6% increase, trading at 116.6p, making it one of the top percentage gainers on the FTSE 100 index. The company reported H1 revenue of $2.62 billion, representing a 19.7% increase on a constant currency basis. This growth was driven by the expanding penetration of mobile data and mobile money services. Airtel Africa also reported a 9.7% increase in its total customer base, reaching 147.7 million. However, the company posted a half-year loss after tax of $13 million, primarily due to the devaluation of the Nigerian naira in June. The CEO, Olusegun Ogunsanya, expressed the company’s commitment to addressing challenges, such as rising diesel prices in Nigeria, with the aim of limiting their impact through operational leverage and cost efficiencies. The company expects to deliver an improved EBITDA margin in FY’24 compared to FY’23. As of the last close, Airtel Africa had gained 1.8% year-to-date. Coming a close second on the session were shares of the British education company Pearson experienced a 2.94% increase in their value. The company raised its full-year adjusted operating profit forecast by approximately £20 million, bringing it up to a total of £575 million. This upward revision in profit guidance was attributed to strong demand for Pearson’s assessments and qualifications. The company also reported continuing momentum in its business during the third quarter, with a particular boost from Pearson VUE and Pearson Test of English. To further enhance shareholder value, Pearson initiated a £300 million share buyback program.
FTSE Bias: Bullish Above Bearish below 7470