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
Brewin's Foster: the world’s most unconventional monetary policies

Brewin's Foster: the world’s most unconventional monetary policies

In this week's podcast, Guy Foster asks why the world’s biggest economies are pursuing some of the world’s most unconventional monetary policies. 

Play Charles Tan on Woodford & hidden trust income gems

Charles Tan on Woodford & hidden trust income gems

Cantor Fitzgerald investment company analyst Charles Tan discusses Woodford Patient Capital and some of the income trusts slipping under the radar.  

Play Taxicab Tenner: SGPB Hambros CIO Eric Verleyen

Taxicab Tenner: SGPB Hambros CIO Eric Verleyen

In the second episode of our new series, Verleyen jumps on board a black cab and explains how hard it's become to find good valuation on the market.  

Wealth Manager on Twitter