FTSE 100: BP profits surge as housing market outlook hits homebuilders

The FTSE 100 was drowsy in Tuesday’s trading, with the index gaining 0.1% to 7,419.5 in afternoon trading.

Markets have dodged panic across Asian markets, but US House Speaker Nancy Pelosi’s visit to Taiwan has set new alarm bells amid rising geopolitical tensions.

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“The FTSE 100 was in correction mode on Tuesday morning, trading broadly flat, but avoided the decline seen in Asia last night,” said Russ Mold, investment director at AJ Bell. I was.

“With Nancy Pelosi gearing up to visit Taiwan, new concerns have arisen about US-China relations, as if the market should be worried about something new.”

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BP shares rose 3.4% to 405.8 pence after the oil and gas giant reported its second quarter banner. Revenue surges 85% to $69.5 billion It posted a profit of $9.3 billion after a loss of $20.4 billion related to Rosneft shares in the first quarter.

BP also announced the commencement of a $3.5 billion share buyback, which is expected to be completed before the third quarter results, shortly after the completion of the $2.5 billion share buyback in the second quarter.

The company raised its dividend by 10% to 6c compared to last year’s 5.4c.

Hargreaves Lansdowne equity analyst Matt Blitzman said: “BP expects oil prices to continue to rise in the third quarter, which is good news for consumers who are already battling higher energy and gasoline prices. is not good news, but it is good news for cash flow.

“In the accommodative environment we see, BP could push its dividend higher, just finishing a $2.5 billion program and proceeding with $3.5 billion of new buybacks.”

“The market has responded favorably to a set of results that beat expectations on almost every metric.”


Fresnillo’s shares fell 5.6% to 687p, hitting the bottom of the FTSE 100 after gold miners reported poor 2022 HY1 performance.

mining giant announced Revenue fell 14.2% to $1.2 billion Gross profit decreased 39.7% to $365.9 million and EBITDA decreased 38.5% to $459.1 million.

Fresnillo attributed the poor results to lower gold trading volumes and falling silver prices.

The company cut its dividend by 65.7% to 3.4c per share, compared with 9c a year earlier.

Housing market shows signs of slowing down

housing market saw Prices rose 11% for the 12th straight month However, the sector appears to be showing the first signs of a slowdown in the coming months.

The latest report from Nationwide showed an 11% rise against June’s 10.7% rise, but market weakness cracked as the cost of living crisis began to weigh on the gravity-defying industry. included a decline in mortgage approvals.

Markets are also growing wary of an upcoming meeting of the Bank of England, which is expected to raise interest rates to 0.5% as it deals with surging inflation and could put the brakes on a runaway housing market. .

“Zupra’s numbers out today are early signs that the market is starting to slow,” said Helen Morrissey, senior pension and retirement analyst at Hargreaves Lansdowne.

“Mortgage approvals are starting to decline, so we expect slower activity as people tighten their belts as bills continue to rise.”

“The prospect of further interest rate hikes ahead may make people reconsider whether they can afford to move home.”

Housing stocks hit, Taylor Wimpy down 3.9% to 122.9p, Barratt Developments down 3.8% to 486.4p, Barclays Group Holdings down 3.5% to 4,145p and Persimmon down 3.1% to 1,843.7 pence.

FTSE 100: BP profits surge as housing market outlook hits homebuilders

Source link FTSE 100: BP profits surge as housing market outlook hits homebuilders

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