London markets finish higher despite NatWest share slump
The FTSE 100 moved 0.5%, or 38.99 points, higher to finish at 7,870.57.
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Your support makes all the difference.London’s top equity markets returned to gains on Friday after four consecutive days of decline.
Positive earnings updates for Prudential and Pearson helped guide the FTSE higher despite a weaker showing for NatWest, which weighed down on other major banking stocks.
The FTSE 100 moved 0.5%, or 38.99 points, higher to finish at 7,870.57.
Elsewhere in Europe, the other major markets were mixed after new figures showed eurozone GDP grew only marginally in the first three months of the year, finishing below expectations.
The Dax rose by 0.67% and the Cac 40 decreased by 0.03% at the close.
Chris Beauchamp, chief market analyst at IG, said: “The month is going out with some small upside for stocks, after a week in which earnings provided fresh good news.
“After a poor start to the day, European markets have recovered well, performing a hand-brake turn in the afternoon session.
“But a firm break higher still eludes most indices, and might well continue to do so next week with so much major news to digest.”
Across the Atlantic, the main markets initially slipped back with downbeat Amazon earnings impacting sentiment but recovered ground quickly.
Meanwhile, sterling was up against the weaker euro, which was dented by signs of stagnation in the eurozone.
The pound was up 0.68% to 1.258 US dollars and rose by 0.57% to 1.139 euros at market close in London.
In company news, NatWest finished lower despite operating profits rising by more than 50% to £1.8 billion for the first three months of the year.
Revenues also surpassed expectations for the quarter but investors were left unimpressed by another drop in customer deposits.
The banking firm saw shares slip by 10.2 to 262p at the close.
Elsewhere in finance, corporate banking group Numis saw shares rocket by two-thirds after agreeing a £410 million takeover deal from Deutsche Bank.
The German banking giant sealed a 350p-per-share move, which would see Deutsche’s UK operations combine with those of its smaller rival, creating what it said would be “a leading force in UK investment banking”.
Numis shares leapt by 137p to 341p by the end of trading.
Prudential shares climbed after the London-listed insurer said sales and profits increased significantly as a result of easing pandemic restrictions in China.
The firm closed 48.5p higher at 1,211.5p after posting a 30% jump in profits to 743 million dollars for the first quarter of the year.
Spirit giant Diageo closed 93p lower at 3,622p after key rival Remy Cointreau delivered a disappointing sales outlook amid weak demand in the US.
The price of oil edged higher for the day but failed to avoid a second consecutive weekly decline amid worries about a softening economic outlook.
Brent crude oil increased by 1.48% to 79.53 US dollars per barrel when the London markets closed.
The biggest risers on the FTSE 100 were: Prudential, up 48.5p at 1,211.5p; Pearson, up 32.4p at 887p; Smurfit Kappa, up 96p at 2,942p; London Stock Exchange Group, up 262p at 8,346p; and Segro, up 24.2p at 834.8p.
The biggest fallers on the index were: NatWest, down 10.2 at 262p; Diageo, down 93p at 3,622p; Antofagasta, down 27.5p at 1,460.5p; Ocado, down 7.6p at 505.2p; and Weir, down 27.5p at 1,840p.