London open: Stocks fall as ex-divs weigh; Lloyds, HSBC in the red

(Sharecast News) - London stocks fell in early trade on Thursday, led lower by a host of ex-dividend names, while Lloyds slumped after warning it would need to increase its motor finance provisions.

At 0830 BST, the FTSE 100 was down 0.3% at 9,524.44.

Richard Hunter, head of markets at Interactive Investor, said: "The FTSE 100 declined from its own record closing high at the open, weighed down by the usual Thursday raft of stocks being marked ex-dividend.

"Despite any weakness in opening exchanges, the premier index has posted an impressive gain of 16.5% in the year to date, quite apart from the additional boost across its constituents of an average 3.1% dividend yield.

"With an increasing appetite for haven destinations in evidence and with a still heavily discounted valuation to many of its global peers, the FTSE 100 for many continues to represent compelling value."

In equity markets, Barratt Redrow, Tesco, WPP, Kingfisher, Taylor Wimpey and Primary Health Properties all fell as they traded without entitlement to the dividend.

HSBC tumbled after announcing plans take Hang Seng Bank private in a deal that values the lender at 290 billion Hong Kong dollars ($37bn).

HSBC, which owns around 63.3% of Hang Seng Bank, has offered HK$155 a share for the shares it does not already own. This is a premium of about 30% to the last closing price.

Lloyds lost ground after saying it will need "material" additional provisions to provide redress to customers in the motor finance mis-selling scandal.

The Financial Conduct Authority ruled this week that lenders would have to pay out £11bn including costs in compensation after finding "widespread failings" in how motor finance firms disclosed commission payments and commercial ties between lenders and brokers on agreements signed between 6 April 2007 and 1 November 2024.

Lloyds, which has already put aside £1.2bn to cover possible costs, said it was still reviewing the regulator's proposals but predicted that additional provisions would be required.

On the upside, heavily-weighted miners rose in tandem with copper prices, with Anglo American, Antofagasta, Rio Tinto and Glencore all up.

Shares of luxury fashion brand Burberry rallied after an upgrade to 'buy' from 'hold' at Deutsche Bank.

Johnson Matthey gained as it said full-year underlying operating profit was set to be at the higher end of initial guidance for mid single digit growth.

In a pre-close trading update for the half year ended 30 September, the company said it expects a strong performance in group underlying profit for the half year, driven by ongoing efficiency improvements across the group, as well as strong trading in the PGM Services business.

Volution shot higher as the designer and manufacturer of energy efficient indoor air quality solutions reported a rise in full-year profit and revenue, boosted by its acquisition of Fantech in Australasia.

Food and beverage outlet operator SSP edged up as it said that both revenue and profits had increased in the year ended 30 September, despite a moderation in passenger number growth in the second half.

Market Movers

FTSE 100 (UKX) 9,524.44 -0.26%

FTSE 250 (MCX) 22,069.35 0.12%

techMARK (TASX) 5,594.16 0.17%

FTSE 100 - Risers

Anglo American (AAL) 2,986.00p 2.97%

Antofagasta (ANTO) 2,865.00p 2.58%

Rio Tinto (RIO) 5,161.00p 2.26%

Burberry Group (BRBY) 1,292.00p 2.13%

Entain (ENT) 840.80p 1.74%

Ashtead Group (AHT) 5,236.00p 1.71%

Glencore (GLEN) 361.30p 1.56%

Mondi (MNDI) 860.00p 1.42%

International Consolidated Airlines Group SA (CDI) (IAG) 405.60p 1.40%

Weir Group (WEIR) 2,834.00p 1.14%

FTSE 100 - Fallers

HSBC Holdings (HSBA) 997.40p -6.44%

Barratt Redrow (BTRW) 376.30p -3.36%

Lloyds Banking Group (LLOY) 83.48p -3.36%

Babcock International Group (BAB) 1,245.00p -1.81%

Tesco (TSCO) 441.40p -1.36%

Persimmon (PSN) 1,139.00p -1.09%

WPP (WPP) 364.00p -0.98%

Barclays (BARC) 380.00p -0.73%

BAE Systems (BA.) 2,016.00p -0.64%

Rolls-Royce Holdings (RR.) 1,145.50p -0.61%

FTSE 250 - Risers

Volution Group (FAN) 709.00p 9.24%

Pollen Street Group Limited (POLN) 926.00p 2.66%

Grainger (GRI) 192.20p 2.23%

Fidelity China Special Situations (FCSS) 338.50p 2.11%

Energean (ENOG) 880.00p 2.09%

Johnson Matthey (JMAT) 2,086.00p 1.96%

Victrex plc (VCT) 694.00p 1.91%

B&M European Value Retail S.A. (DI) (BME) 238.70p 1.57%

Baillie Gifford Japan Trust (BGFD) 934.00p 1.52%

Genuit Group (GEN) 367.50p 1.52%

FTSE 250 - Fallers

Taylor Wimpey (TW.) 100.15p -4.89%

Close Brothers Group (CBG) 500.00p -4.58%

Frasers Group (FRAS) 702.00p -2.84%

Primary Health Properties (PHP) 87.95p -2.06%

Syncona Limited NPV (SYNC) 98.00p -2.00%

Ruffer Investment Company Ltd Red PTG Pref Shares (RICA) 289.50p -1.86%

NB Private Equity Partners Ltd. (NBPE) 1,480.00p -1.86%

Trainline (TRN) 270.20p -1.67%

AO World (AO.) 98.80p -1.59%

Aston Martin Lagonda Global Holdings (AML) 66.05p -1.42%