FTSE 100 Live Friday
- NatWest lifts guidance
- Retail recovery disappoints
- Marshalls cuts profit forecast
Market update: NatWest advances in weaker FTSE 100, Marshalls down 22%
10:05 , Graeme EvansThe momentum of NatWest today provided cheer in a session when the FTSE 100 index fell from a record high and retail sales rebounded by less than hoped.
NatWest rose 9.8p to 511.4p after a forecast-beating 18% uplift in half-year profits to £3.58 billion was accompanied by upgraded 2025 guidance, a 58% dividend hike and £750 million buyback of shares.
Richard Hunter, head of markets at Interactive Investor, said: “As far as investors are concerned, NatWest is in a sweet spot.
“The government shackles have gone, the group has prodigious amounts of cash and acquisitions to boost growth further seem likely.”
The update inspired Lloyds Banking Group to a rise of 1.6p to 79.7p, having failed to benefit from its own robust set of half-year numbers yesterday.
The lenders were joined on the risers board by BT Group, which extended the 10% jump of the previous session with a gain of 2p to 222.2p.
Diageo also lifted 19p to 1973.5p after Remy Cointreau raised profit guidance, having reported its first quarter of sales growth in more than two years.
BP and Shell shares rose 0.5% but the FTSE 100 index ended a record-breaking week down 0.4% or 38.59 points at 9099.78.
AJ Bell investment director Russ Mould said: “The next big focus for the market is whether a deal can be struck between the EU and Trump administration on trade – which would remove one of the biggest remaining uncertainties ahead of next week’s tariff deadline.”
Big fallers included London Stock Exchange, which dropped 4% or 365p to 9880p, and Primark owner Associated British Foods following a decline of 39p to 2198p.
JD Sports Fashion also dipped 1.4p to 91.6p after it emerged that retail sales volumes rebounded by 0.9% in June, below City forecasts of 1.2%.
Warm weather boosted the overall performance, with non-food stores only up marginally by 0.2% over the month.
The FTSE 250 index fell 0.4% or 92.72 points to 22,062.69, led by a 22% slide for Marshalls after it scaled back 2025 profit guidance.
The landscaping products firm slumped 57.5p to a two-year low of 206.5p, having reported a softening of key markets in recent weeks.
Jupiter Fund Management also fell 8.8p to 126.4p despite posting a half-year profit above City expectations at £30 million.
On the risers board, Close Brothers jumped 9% or 36.6p to 448p after announcing the sale of Winterflood Securities for £103.9 million.
Wizz Air shares also rallied 9% - up 96p to 1170p - after analysts at Barclays lifted their recommendation to Overweight with a price target of 1500p.
Mitchells & Butlers surrendered initial gains after the pubs chain said strong summer trading had boosted confidence that 2025 results will be at the top end of City hopes. Shares later settled half a penny higher at 289p.
Rightmove profits rise 10%, shares fall
09:40 , Graeme EvansRightmove has revealed better-than-expected sales as competitive mortgage rates have boosted homebuyer interest, but it cautioned over slowing growth over the rest of the year.
The property portal reported a 10% jump in sales to £211.7 million over the six months to the end of June, helping pre-tax profits rise 10.4% to £146.5 million.
Available listings surged to a 10-year high in its first half, and in June alone new listings and demand raced higher by 9% and 6% respectively.
Shares fell 11.8p to 783.2p after the group said revenue growth is set to slow over the final six months following a record performance a year earlier.
Marshalls down 19% in weaker FTSE 250, Close Brothers up 9%
09:08 , Graeme EvansThe FTSE 250 index has fallen 0.4% or 80.28 points to 22,075.13, with Marshalls down sharply after it scaled back 2025 profit guidance.
The landscaping products firm slumped 19% or 50p to a two-year low of 214p, having reported a softening of key markets in recent weeks.
Jupiter Fund Management also fell 4.8p to 130.4p following interim results, while ITV shares gave up some of yesterday’s gains with a decline of 1.85p to 85.95p.
Close Brothers is the best performing FTSE 250 stock, up 9% or 38.6p to 450p after announcing the sale of Winterflood Securities for £103.9 million.
Mitchells & Butlers lifted 4p to 292.5p after strong summer trading boosted the pub chain’s confidence that 2025 results will be at the top end of City hopes.
Wizz Air shares rallied 7% or 75p to 1149p after analysts at Barclays lifted their recommendation to Overweight with a price target of 1500p.
NatWest in a “sweet spot” after strong HY results
08:40 , Graeme EvansNatWest today took the opportunity to raise its full-year guidance, bringing the lender in line with where many City forecasts were already sitting.
Total income is seen at more than £16 billion compared to a previous range of £15.2 billion to £15.7 billion, while the return on tangible equity estimate is above 16.5% compared with 15%-16% previously.
Hargreaves Lansdown senior analyst Matt Britzman said today’s results were a broad-based beat, with impairments doing most of the work to bring profits above expectations.
He said: “The overarching story here is a positive one. Borrowers are looking strong, loans and deposits are growing, and costs are under control.”
Britzman said the favourable conditions provided a strong base for the bank’s structural hedge, which is used to smooth out volatility in the interest rate cycle.
He said: “The hedge is expected to bring home an additional £1 billion of income this year alone, as 0% products are being reinvested at yields of around 3.7%. This is a multi-year tailwind that’s helping underpin a positive outlook for NatWest.”
The share price has risen 49% over the last year, compared to a hike of 11.6% for the wider FTSE100, and by 99% over the last two years.
Richard Hunter, head of markets at Interactive Investor, added: “NatWest is the preferred play in the sector and these numbers vindicate that optimism.
“As far as investors are concerned, NatWest is in a sweet spot. The government shackles have gone, the group has prodigious amounts of cash and acquisitions to boost growth further seem likely.”
NatWest shares get results lift, FTSE 100 lower
08:26 , Graeme EvansNatWest shares rose 3.8p to 505.4p after half-year results included stronger guidance for the lender’s performance across 2025.
As well as a new return on tangible equity estimate above 16.5%, NatWest announced a 58% increase in its interim dividend to 9.5p a share.
In contrast to NatWest’s share price performance, Lloyds fell 0.6p to 77.4p amid a low key reaction to results published yesterday.
Barclays shares fell 2.3p to 356.1p ahead of results next week, while HSBC dipped 6.4p to 954.5p.
The FTSE 100 index fell back from record territory, down 31.58 points to 9106.79. The weakness came despite stronger sessions for Centrica, BP and Shell.
Rightmove shares fell 15p to 780p after reporting a 9% rise in half-year underlying operating profit to £151.3 million and reiterating guidance for 2025.
Marshalls cuts profit guidance, steps up costs focus
07:52 , Graeme EvansLandscaping products business Marshalls today scaled back profit expectations after it experienced a softening of key markets in recent weeks.
First half revenue of £319 million rose 4% on a year earlier, with volume growth being partially offset by weaker pricing and product mix.
Activity levels in the company’s key end markets softened from the end of May, with Marshalls seeing no immediate catalyst for improvement over the rest of 2025.
As a result, full year profit expectations have reduced to the range of £42 million and £46 million. It reported a figure of £52.2 million for 2024.
Chief executive Matt Pullen said: “We have taken action to reduce costs and optimise our national manufacturing network in the first half of the year and are taking further action at pace in the second half, which together are expected to improve Landscaping profitability materially in 2026.”
Mitchells & Butlers momentum continues, boosts profit guidance
07:40 , Graeme EvansPub chain Mitchells & Butlers today said it was confident that results for the finanical year will be at the top end of City expectations.
The group, whose portfolio includes the chains Harvester, Toby Carvery, All Bar One and Miller & Carter, said like-for-like sales rose 5% in the third quarter and by 4.5% in the year-to-date.
Building on a strong performance through the first half, Mitchells said sales growth has remained well ahead of the market amid the benefit of recent sunny weather.
Chief executive Phil Urban said: "The business continues to perform strongly, enabling us to meet the cost challenges facing the sector with confidence.”
Close agrees £104m Winterflood disposal
07:32 , Graeme EvansClose Brothers today announced it has agreed the sale of Winterflood Securities to financial services platform Marex in a deal worth £103.9 million.
Winterflood provides execution services to over 500 stockbrokers, wealth managers, institutional investors and other market counterparties.
FTSE 250-listed Close said the deal, which is subject to regulatory clearance, was another step in simplifying the group to focus on specialist lending.
NatWest strengthens guidance, dividend up 58%
07:15 , Graeme EvansNatWest today upgraded its income and returns guidance for 2025 after reporting a “strong performance” in the first half of the year.
Operating profit rose 18% to £3.58 billion, including a broadly flat quarter-on-quarter figure of £1.77 billion for the three months to 30 June.
An interim dividend of 9.5p a share is 58% higher than a year ago, while it intends to commence a share buyback programme of £750 million in the second half.
A net impairment charge of £193 million, or 19 basis points of gross customer loans, in the second quarter included an £81 million charge on the acquisition of balances from Sainsbury's Bank.
New guidance for 2025 includes a loan impairment rate below 20 basis points.
Retail sales volumes return to growth
07:03 , Graeme EvansRetail sales volumes returned to growth in June after recording a 2.8% slump the previous month.
The ONS today reported growth of 0.9%, compared with City forecasts for a figure of 1.2%.
Food store sales rose by 0.7% following a 5.4% fall in May, with retailers reporting that the warm weather had a positive effect.
Automotive fuel volumes rose by 2.8% on the month, the largest rise since May 2024 as retailers also mentioned the impact of good weather.
Sales volumes rose by 0.2% across the quarter compared with the first three months of the year.
Capital Economics said: “The disappointingly small rebound in retail sales in June supports our view that the economy grew by just 0.1% quarter-on-quarter in the second quarter and means the risks to our forecast for consumer spending to grow by 1.4% in 2025 are tilted to the downside.”
FTSE 100 seen lower, S&P 500 index sets new record
06:59 , Graeme EvansWall Street markets posted a mixed performance last night after the S&P 500 index edged to a new record close but the Dow Jones Industrial Average fell 0.7%.
The Nasdaq Composite finished up 0.2%, having been higher earlier in the session. Tesla fell by 8% in a post-results sell-off.
Strong corporate earnings and hopes of a US-EU trade deal last night helped the FTSE 100 index to a record close of 9138.37, up 76.88 points or 0.9%.
The top flight benchmark, which yesterday rose as far as 9158.21, is seen opening 0.1% lower this morning.
