FTSE 100 movers: StanChart gains on results; GSK in the red

London’s FTSE 100 was down 0.7% at 8,159.45 in afternoon trade on Wednesday as chancellor Rachel Reeves delivered the first Labour Budget in 14 years.

Standard Chartered rallied as it lifted its full-year guidance after a record performance in its wealth division helped third-quarter profits beat expectations.

The Asia-focused bank, which is headquartered in the UK, said operating income rose 11%, or 12% on a constant currency basis, to $4.9bn in the three months to September end.

Within that, net interest income jumped 9% to $2.6bn - ahead of expectations for $2.57bn - while wealth solutions soared 32% to $694m. StanChart said there had been broad-based growth across products in the division.

Group underling pre-tax profits jumped 41% to $1.8bn, comfortably beating forecasts for $1.59bn.

Looking to the rest of the year, StanChart said underlying operating income was now expected to come in 10% higher year-on-year on a constant currency basis. It follows an earlier uplift to forecasts in July, when the outlook was increased to 7% from an earlier range of between 5% and 7%.

The blue chip will also look to return at least $8bn to shareholders over 2024-2026, up from $5bn, and upwardly revised medium-term operating income targets.

Next was also in the black as it boosted guidance for both the crucial fourth quarter and the full year after the recent cold snap caused sales to surge.

Updating on trading, the blue chip retailer said full price sales surged 7.6% in the 13 weeks to 26 October, well ahead of the 5% uplift it had forecast.

Next attributed the better-than-expected performance to the arrival of colder weather this year, which compared favourably to last year’s unusually warm September and early October.

As a result, Next lifted guidance for fourth-quarter full price sales to 3.5%, and full-year profits and sales.

It now expects 2024/25 sales to come in at £5.02bn, compared to its previous forecast for £4.98bn, with pre-tax profits topping £1bn, at £1.005bn. That would be an 9.5% increase on the previous year.

Total group sales - which include markdowns and subsidiaries - are forecast to be £6.27bn, up 7.4% year-on-year.

Prior to Wednesday’s update, Next had expected full-year pre-tax profits to come in at £995m on sales of £4.98bn.

GSK was under the cosh, however, as the drug maker’s third-quarter sales missed expectations.

FTSE 100 - Risers

Smurfit Westrock (DI) (SWR) 3,609.00p 4.76%
Standard Chartered (STAN) 904.80p 3.24%
Croda International (CRDA) 3,709.00p 2.43%
Marks & Spencer Group (MKS) 382.00p 1.49%
Glencore (GLEN) 410.30p 1.41%
Next (NXT) 10,200.00p 1.29%
Entain (ENT) 722.20p 1.26%
Admiral Group (ADM) 2,602.00p 1.21%
Flutter Entertainment (DI) (FLTR) 17,370.00p 1.14%
LondonMetric Property (LMP) 198.40p 1.07%

FTSE 100 - Fallers

GSK (GSK) 1,392.00p -4.10%
Anglo American (AAL) 2,397.50p -3.44%
Diageo (DGE) 2,461.50p -2.19%
Experian (EXPN) 3,773.00p -2.13%
Relx plc (REL) 3,593.00p -1.83%
Whitbread (WTB) 3,174.00p -1.58%
WPP (WPP) 824.40p -1.58%
Auto Trader Group (AUTO) 861.20p -1.53%
Convatec Group (CTEC) 218.80p -1.53%
Sage Group (SGE) 993.20p -1.52%