FTSE 100 close: HSBC leaps and BP gives up gains in mixed day for London index

London’s FTSE 100 kicked lower today after a clutch of mixed results puzzled investors.

The capital’s premier index fell 0.43 per cent lower to 7,666.26 points, while the domestically-focused mid-cap FTSE 250 index, which is more aligned with the health of the UK economy, slipped 0.41 per cent to 19,065.66 points.

A set of results this morning that initially led the FTSE 100 higher were received in subdued fashion by City traders.

Oil giant BP followed in the footsteps of its peer Shell in announcing a big profit slide as a result of oil prices dropping from their steep levels after Russia’s full scale invasion of Ukraine.

The firm headed by Bernard Looney said earnings came in at £2bn in the latest quarter, down from £6.5bn in the same period last year.

Despite the profit slump, the commodities titan said it will buy back over a £1bn of investors’ shares, although that wasn’t enough to impress investors. Its FTSE 100-listed shares closed 0.26 per cent lower after climbing to near the summit of the premier index during morning trading.

Victoria Scholar, head of investment at Interactive Investor, said: “BP’s results echo those of its rivals like Shell, suffering from lower profits amid tough year-on-year comparables following last year’s blockbuster period for oil when energy prices soared on the back of the war in Ukraine.”

Shell was down marginally.

Britain’s largest bank HSBC this morning announced a huge profit upsurge, compelling it to launch a fresh share buyback programme of £1.5bn.

That investor gift sent the Asia-focused conglomerate’s FTSE 100-listed shares up 1.33 per cent and to fourth on the biggest risers table.

Like other lenders, HSBC has benefited from central banks around the world lifting interest rates in a bid to tame scorching inflation. It has allowed them to charge more for loans.

Richard Hunter, also of Interactive Investor, said that despite HSBC “spinning so many plates, the group remains focused on its business as usual, and the rising interest rate environment has provided a strong tailwind”.

Miner Fresnillo slumped over four per cent after it said this morning first half profits have been clobbered from soaring costs. It initially tumbled around 10 per cent during early exchanges.

Pound sterling weakened 0.68 per cent against the US dollar, although it is still up over five per cent against the greenback so far in 2023.

Oil prices sipped 0.75 per cent.