Banks, houses and offers

The FTSE100 has started the week in confident form following forward momentum in Asian markets although the EU referendum and oil prices remain key factors for investors.

HSBC got the ball rolling on a week of banking results with a lacklustre performance and a less than encouraging outlook,” says AJ Bell Investment Director Russ Mould.

“The group’s prediction of a bumpier road ahead due to China’s slowdown and a cut in dividends were particularly unpalatable for investors. And the bank has also confirmed it is one of a number of financial institutions under investigation by the US Securities and Exchange commission over recruitment practices in Asia. A toxic combination which saw HSBC rooted at the foot of the blue chip index in early trading. 

“Housebuilder Bovis continues to bask in the glow from Britain’s buoyant housing market with record profits of £160.1m for 2015, 20% up on last time. Revenues were up 17% driven by a 7% rise in average sale prices. The final dividend of 26.3p takes the total payout to 40p, 14% up on 2014.

“Home Retail’s shares jumped in early trading following the emergence of a new suitor, the South African retailer Steinhoff. Home Retail has already received a £1.3bn approach from Sainsbury’s but Steinhoff has trumped this with an indicated offer of 175p per share, valuing Home Retail at £1.4n.”

These articles are for information purposes only and are not a personal recommendation or advice.