Share buyback news lifts HSBC and BP, Greggs down on lack of upgrades and Domino’s extends rally

“A decent showing from HSBC and BP helped to prop up the FTSE 100 and make it the only major European index to be in positive territory in early trading,” says Laith Khalaf, head of investment analysis at AJ Bell.

“HSBC’s results got the thumbs-up from investors thanks to bumper profits and news of another $2 billion share buyback, having already completed one this year.

“BP was also in the mood for share buybacks, saying it would spend up to $1.5 billion on the activity up to the end of October. That announcement, together with news of a 10% dividend hike, was enough to please investors and shift the attention away from a big fall in second quarter profits.

“Sales, profits and dividends were all up in Greggs’ half year results but the lack of any upgrades to forward earnings guidance left investors unhappy and the shares fell nearly 4%. The business said the rate of cost inflation has started to ease and that it has a plan to get customers to

Domino’s Pizza

“A 20% jump in Domino’s Pizza collection orders goes to show consumers are finding ways to save money and still get their favourite food treats. Anyone willing to go to their local store can typically get a big discount on a collection order at Domino’s.

“In the current cost-of-living crisis, Domino’s has to take that trend as a win – after all, it’s better to shift a chunk of pizzas at a lower price than none at all.

“Having seemingly sorted out its spat with franchisees, Domino’s seems to be bending over backwards to help them make more money and there is upgraded earnings guidance to keep the market happy.

“Investors liked the overall tone of the results, with the share price continuing its recent rally. It helps that a new boss is joining just as the business seems to be finding its feet again after a patchy few years.

“Andrew Rennie brings considerable expertise from running Domino’s stores in other geographic territories. That implies stability rather than a radical new strategy – sometimes it is better to get the wheels turning smoothly rather than making them spin as fast as possible.”

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