The FTSE 100 traded sideways in Tuesday as the impact of soft corporate updates were offset by stronger commodities companies and those with a focus on China.
Standard Chartered, HSBC, BP and Shell gained helping the FTSE 100 outperform European peers on the day.
The market was flat at 7,483.8, despite HY1 2022 updates from Abrdn, Legal & General, and IHG released today.
Abrdn
Abrdn sank to the bottom of the index, falling 5.3% to 163.7p after the firm swung to a £320 million pre-tax loss compared to a £113 million profit in HY1.
The company attributed its poor results to £313 million in losses from the change in value of its significant investments in the interim period.
Abrdn net outflows ballooned to £35.9 billion from £5.6 billion the year before, and its adjusted operating profit fell 28% to £115 million as a result of market movements.
“The half year Group results largely reflect the challenging global economic environment and market turbulence,” said Abrdn CEO Stephen Bird.
IHG
Intercontinental Hotels Group shares fell 1.5% to 4,938.5p despite a soaring 52% climb in revenue to $1.7 billion from $1.1 billion in HY1 2022.
The hotels group announced a 162% operating surge to $361 million against $136 million the last year, with significant improvements in trading across most regions.
However, it confirmed a 39% fall in Greater China revenue to $36 million from $59 million due to Covid-19 travel restrictions and lockdowns.
Intercontinental Hotels Group also announced a $500 million share buyback and a resumed dividend payout of 43.9¢ per share.
Legal & General
Legal & General shares dipped 0.5% to 270p following a report of modest post-tax profit growth to £1.1 billion in HY1 against £1 billion the last year, with an 8% operating profit rise to £1.1 billion compared to £1 billion.
The group confirmed a 5% dividend hike to 5.4p from 5.1p the year before.
Legal & General said all four of its sectors were well-positioned to capitalise on structural market opportunities and to deliver profitable growth across the medium-to-long term, notwithstanding market volatility.
Oil prices rise
Oil prices picked up again after a fall to $93 per barrel on Monday, with Brent Crude rising to $97 and sparking a resurgence in the FTSE 100 oil giants.
Shell shares gained 1.7% to 2,199p and BP shares climbed 1.9% to 424.2p.
