Published On : 04/28/2023

Banks, miners lead FTSE 100 lower

By Shristi Achar A

(Reuters) -London’s FTSE 100 fell for the fifth straight day, as a sharp drop in shares of NatWest weighed on the banking sector on Friday, while mining stocks lost ground tracking weaker copper prices.

The blue-chip index was down 0.5%, while the mid-cap FTSE 250 slipped 0.1%, as of 0714 GMT.

Lenders led losses, down 2.2%. NatWest fell 5.9% despite reporting better-than-expected quarterly profit.

“Even though the results are really good … the net interest margin is a bit disappointing,” said Andrew Jones, portfolio manager at Janus Henderson

People had hoped for a bit more, and they really focus on that for a bank, as interest rates have gone up for the first time in a long time.

Base metal miners added to the pressure on FTSE 100, down 1.8% and were on track for their biggest weekly drop in a month. [MET/L]

On the bright side, life insurers rose 0.3%, led by a 1.3% rise in Prudential after posting a 30% jump in new business profit.

The FTSE 100 is poised to gain 2.1% for the month despite a volatile week amid a burst of earnings, supported by defensive sectors including pharmaceuticals and consumer staples.

Pearson rose 3.4% after the education group said it was on track to meet its annual guidance, and also deliver 120 million pounds ($150 million) of cost efficiencies this year.

Numis Corp surged 67.2% after Deutsche Bank said it would buy the London-based institutional stockbroker and corporate advisor for about 410 million pounds.

Meanwhile, British businesses were their most optimistic in nearly a year in April, boosted by growing hopes about the economy, according to a Lloyds Bank survey.

(Reporting by Shristi Achar A in Bengaluru; Editing by Sonia Cheema and Nivedita Bhattahacharjee)

Wanda Rich

Wanda Rich has been the Editor-in-Chief of Global Banking & Finance Review since 2011, playing a pivotal role in shaping the publication’s content and direction. Under her leadership, the magazine has expanded its global reach and established itself as a trusted source of information and analysis across various financial sectors. She is known for conducting exclusive interviews with industry leaders and oversees the Global Banking & Finance Awards, which recognize innovation and leadership in finance. In addition to Global Banking & Finance Review, Wanda also serves as editor for numerous other platforms, including Asset Digest, Biz Dispatch, Blockchain Tribune, Business Express, Brands Journal, Companies Digest, Economy Standard, Entrepreneur Tribune, Finance Digest, Fintech Herald, Global Islamic Finance Magazine, International Releases, Online World News, Luxury Adviser, Palmbay Herald, Startup Observer, Technology Dispatch, Trading Herald, and Wealth Tribune.