An uncertain performance from banking stocks failed to hold back progress on the London market today.
The FTSE 100 Index added to Tuesday’s 2% rally with another 25.6 point gain to 6,431.8, despite early session falls on the Dow Jones Industrial Average in the US.
Barclays reported a 25% drop in profits in the first quarter of the year to £1.8billion, largely as a result of restructuring costs, and although shares were up by as much as 3% at one stage the rally ran out of steam to leave the bank 3.75p lower at 294.6p.
In a big session for banking news, part-nationalised Lloyds Banking Group was in focus after it said it would now pursue a stock market flotation for the Project Verde branches it must sell as a condition of state-aid following the collapse of a sale to the Cooperative. Lloyds shares rose 0.9p to 52p, while Royal Bank of Scotland was 3.4p higher at 296.4p.
Standard Life was the biggest riser in the top flight after it reported a strong first quarter update, including record new business sales. Shares were 28.2p higher at 380.7p.
Outside the FTSE 100, shares in infrastructure services firm May Gurney jumped 46.5p to 299.5p, a rise of 18%, after its board backed a takeover approach from Kier, replacing its previous support for a bid from Costain. Kier’s shares were 66p lower at £11.99, while Costain fell 4p to 278.5p.
The biggest FTSE 100 risers included Evraz ahead 7.8p to 166p, Randgold Resources 214p higher at £50.45 and Glencore International 13.5p up at 327.4p.
The biggest FTSE 100 fallers were Centrica down 16.2p to 376.9p, Legal & General off 6.8p to 167.3p, Associated British Foods 49p lower at £19.50 and Rexam off 12.5p to 509.5p.
Mark Ireland, of investment manager and financial planning specialist Brewin Dolphin in Inverness, noted that risers included John Menzies up 4.8% to 720p and Petrofac 4.1% higher at £13.36.
Fallers included Xcite Energy off 2% at 99.6p, Aggreko 1.5% lower at £17.57 and Plexus Holdings down 1.4% at 213.4p.