FTSE slides back on foot of HSBC profits

The London market slid back towards its opening mark today as the City gave a cool reception to record profits from banking group HSBC.

After rising 23 points in earlier trading, the FTSE 100 Index retrenched to stand 6.4 points up at 5013.2 by mid-morning.

As another busy week for corporate results got underway, HSBC unveiled a 37% rise in annual profits to €17.61bn (£9.18bn/€13.3bn) – the biggest figure recorded by a UK-based bank.

That disappointed traders hoping for heftier profits, leaving HSBC at the top of the Footsie fallers with a loss of more than 2%, or 22.5p, to 870.5p.

However, investors in some of the bank’s rivals were in good spirits, with Northern Rock climbing 4p to 786p, Royal Bank of Scotland advancing 16p to 1792p and Alliance & Leicester improving 0.5p to 892.5p.

The market got a further lift from the Dow Jones Industrial Average, which gained 92 points on Friday amid signs of robust US economic growth.

Back in London, packaging firm Bunzl was at the top of the Footsie risers, soaring 10% or 50p to 520p after saying it would demerge its fibre and plastics business.

Mining stocks were also on the rise. Higher copper prices sent Anglo American up 26p to 1322p, BHP Billiton 11.5p higher to 779.5p and Rio Tinto up 18p to 1845p, while Antofagasta added 12p to 1382p.

Oil stocks benefited as the price of a barrel of US light crude for delivery in April moved up above $52 in morning trading. BP gained 1% or 6p to 574p while Shell picked up 6p to 494.5p and Cairn Energy advanced 22p to 1267p.

Associated British Foods progressed 5p to 783.5p after saying trading remained in line with expectations following a good performance by key brands such as Kingsmill bread.