Wealth Manager - the site for professional investment managers

Register to get unlimited access to all of Citywire’s Fund Manager database. Registration is free and only takes a minute.

Soaring RBS props up FTSE ahead of US jobs figures

Soaring RBS props up FTSE ahead of US jobs figures

Royal Bank of Scotland (RBS.L) has soared after announcing profits doubled in the first quarter of the year, helping to drag the FTSE 100 into positive territory as the market awaits US job figures this afternoon.

RBS jumped 29.4p, or 9.6%, to 335.6p as the taxpayer-owned bank reported pre-tax profits of £1.6 billion for the first three months of the year, almost double what it made in the same quarter last year. The FTSE 100 rose four points, or 0.1%, to 6,813.

'The first quarter interim management statement appears at first read to be way above consensus and our forecast, driven by substantially lower impairments, accompanied by an encouraging outlook statement,' said Mike Trippitt, analyst at Numis.

InterContinental Hotels (IHG.L) also posted big gains, adding 202p, or 10% to £22.25 as it proposed a special dividend and reported the most revenue per hotel room for nearly two years.

InterContinental is proposing returning $750 million (£440 million) to shareholders and reported a 6% jump in revenue per room for the first quarter.

Resolution (RSL.L) added 3.7p, or 1.2%, to 301.3p as the closed-book life insurer, whose shares have slumped in recent months, was raised to 'neutral' from 'underperform' by analysts at Credit Suisse. 

AstraZeneca (AZN.L) fell 36p, or 0.7%, to £47.79, after US rival Pfizer improved its takeover offer from £46.61 to £50 per share. Analysts at Barclays said the offer was likely to prove merely a step towards further negotiation.

'The 70%/30% equity/cash original offer left shareholders with a possibly unwelcome high exposure to Pfizer shares,' they said. 'Today's deal shows a more modest move towards increasing that cash component to around 32% and we expect this could be a point of negotiation going further.'

Trading was muted elsewhere, as investors waited for the publication of US non-farm payroll jobs data this afternoon. Investors expect hiring to have increased at the quickest rate in five months in April.

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.
Citywire TV
Play From Private Bank to Private Office: the next generation of ultra high net worth investors

From Private Bank to Private Office: the next generation of ultra high net worth investors

Citywire's Anna Dumas highlights the trend towards private and family offices.

Play Inside ETFs: how to defend against bond volatility

Inside ETFs: how to defend against bond volatility

In this latest episode we call in experts from 7IM and Markit to assess how the bond sell-off has impacted ETFs.

Play The future of wealth management according to disruptive tech expert Andrew Tarver

The future of wealth management according to disruptive tech expert Andrew Tarver

Three private office investors direct their questions about the future of wealth management, to Andrew Tarver, founder of Boldrocket and disruptive tech expert.

Your Business: Cover Star Club

Profile: Stenham's CIO on the strange persistence of hedge funds

Profile: Stenham's CIO on the strange persistence of hedge funds

Stenham Asset Management chief investment officer Kevin Arenson believes hedge funds are making a comeback

Wealth Manager on Twitter