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FTSE 100 movers: Pearson rallies, NatWest falls on results

Published 28/04/2023, 16:18
Updated 28/04/2023, 15:44
FTSE 100 movers: Pearson rallies, NatWest falls on results

Sharecast - Pearson (LON:PSON) rallied as the education publisher said it was on track to meet annual guidance and announced a £300m share buyback to start in the second half of the year, as it posted a 2% jump in total group sales in the first quarter.

Prudential (LON:PRU) was also in the black as the Asia-focused insurer reported a jump in first-quarter sales and new business profit.

Smurfit Kappa (LON:SKG) gained as the corrugated packaging company posted a rise in first-quarter profit despite a dip in sales.

NatWest (LON:NWG) fell despite reporting better-than-expected first-quarter profit driven by higher interest rates, as it also posted a sharp drop in deposits as customers chased better rates, with incomes squeezed by rising inflation. Other banks followed suit, with Barclays (LON:BARC) and Lloyds (LON:LLOY) also in the red.

Russ Mould, investment director at AJ Bell, said: "A drop in customer deposits, while nothing like on the scale seen at other crisis-ridden banks, has helped put the wind-up investors in NatWest.

"The gap between the amount NatWest charges for loans compared to what it pays out for deposits, also known as the net interest margin, is also tighter than many had hoped.

"This runs counter to Barclays’ own first quarter numbers which showed higher base interest rates were feeding into a strong net interest margin.

"The disappointing news elsewhere overshadowed NatWest’s better than expected earnings for the first quarter – driven by higher non-interest income and lower impairments on bad debts."

FTSE 100 - Risers

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Pearson 889.40p +4.07%

Prudential 1,210.00p +4.04%

SEGRO (LON:SGRO) 835.60p +3.08%

Land Securities Group (LON:LAND) 674.60p +2.84%

Smurfit Kappa Group (CDI) 2,920.00p +2.60%

Phoenix Group Holdings (LON:PHNX) 595.00p +2.55%

Persimmon (LON:PSN) 1,314.50p +2.50%

Reckitt Benckiser Group (LON:RKT) 6,464.00p +2.41%

Scottish Mortgage Investment Trust (LON:SMT) 629.60p +2.27%

Airtel Africa (LON:AAF) 120.00p +2.21%

FTSE 100 - Fallers

NATWEST GROUP 260.50p -4.30%

Diageo (LON:DGE) 3,633.50p -2.19%

Weir Group (LON:WEIR) 1,832.50p -1.87%

Ocado Group (LON:OCDO) 503.40p -1.83%

Barclays 159.26p -1.72%

Lloyds Banking Group 47.99p -1.70%

Antofagasta (LON:ANTO) 1,463.50p -1.65%

British American Tobacco (LON:BATS) 2,923.50p -1.33%

Fresnillo (LON:FRES) 711.40p -1.28%

SSE (LON:SSE) 1,828.00p -1.06%

Read more on Sharecast.com

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