Banks, bids and bakers

The blue-chip index confounded forecasts and edged higher in early trading despite Wall Street reversing early gains to close lower overnight.

“Barclays’ shares slumped in early trading after disappointing full year figures,” says AJ Bell Investment Director Russ Mould.

“After the highs and lows of Lloyds and RBS last week, the market was eager to see which end of the spectrum Barclays would occupy. And while there were some encouraging figures from its core business, the results overall put it firmly on the low side. Underlying pre-tax profits were below forecasts, the bank is having to make further provisions for mis-selling payment protection insurance and while it is maintaining its dividend this time, payouts will be cut by more than half for the next two years.

“The London Stock Exchange found itself at the top of the blue-chip board after US group Intercontinental Exchange confirmed it is considering a counterbid to the potential tie-up with Deutsche Boerse. 

“Bakery group Greggs was an early riser following strong full-year figures. Sales and pre-tax profits were up and it is confident of further underlying growth this year. Greggs delighted investors with a 30% increase in its total ordinary dividend.”

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