The FTSE 100 edged higher this morning amid an avalanche of company results. It rose 3.3 points to 5424 points. HBOS, Britain's largest mortgage lender, was the top-performing stock as first-half profits beat expectations and markets breathed a sigh of relief that there were no nasty shocks in the results.
HBOS jumped 18.25p to 289.5p, a rise of 6.7%, in early trading, even though profits dropped 51% to £1.45bn as it took a £1.1bn hit on mortgage-backed securities. The bank had already warned of the write-down last month.
Shares in Centrica were also among the biggest risers this morning, up 5p to 323p, a rise of 1.6%. The owner of British Gas reported £992m of profits this morning, ahead of City expectations of £880m, but down 19% from last year's record result of £1.3bn. The company angered its 16 million customers with a 35% hike in gas bills yesterday, its biggest ever price increase.
Higher oil prices drove up second-quarter profits at Royal Dutch Shell by 5% to $7.9bn. The shares climbed 22p to £18.59, a rise of 1.1%.
Newspaper publisher Trinity Mirror reported an 8% drop in first-half sales amid a continued slump in print advertising, forcing it to take further cost-cutting measures. The shares edged up 0.75p to 83.75p.
British American Tobacco, the world's second-largest cigarette maker with brands such as Kent, Dunhill, Lucky Strike and Pall Mall, posted a 16% rise in first-half earnings, ahead of analysts' forecasts. It also lifted its half-year dividend by 19% to 22.1p a share. The shares rose 17p to £18.83.
BT was the biggest faller on the FTSE 100, with the shares down 22.5p, or 11.4%, to 175.1p. The telecoms group saw core earnings rise 1% in the first quarter to £1.43bn, just below City forecasts.
Food and consumer goods group Unilever saw its shares tumble 6.6%, making its the second-largest faller on the FTSE 100, after it reported flat second-quarter sales volumes. The stock dropped 99p to £14.11.
Another big faller was insurer Prudential, which reported a 7% rise in first-half profits, boosted by Asia. The company's shares dropped 14p to 523p, a fall of nearly 2.8%.
