HSBC holds FTSE back from record highs

BANKING giant prevented the FTSE 100 Index from testing record highs after its profits tumbled.

Shares in the heavyweight stock slumped almost 5 per cent, which in turn saw the FTSE 100 Index remain broadly flat – down three points to 6912.2.

The top flight had been in positive territory earlier in the session after Greece and its European creditors agreed a four-month extension to the country’s bail-out agreements.

Further progress depends on a list of reforms due to be submitted by the Greek finance minister Yanis Varoufakis.

HSBC said a weak fourth quarter in its investment banking arm contributed to the bank’s annual profit dropping by 17 per cent to $18.7 billion (£12.1bn) for 2014. The slide for such an important blue-chip stock meant the FTSE 100 Index dashed hopes that the top flight might beat 1999’s record close of 6930.

The pound was stronger against the US dollar at 1.55 after American home sales in January grew at their slowest pace for nine months. Sterling was also higher versus the euro at 1.36.

In terms of London shares, banking heavyweight HSBC was the focus of attention after chief executive Stuart Gulliver admitted the banking giant “disappointed” last year.

City investors agreed as shares fell 28p to 577.2p and Asia-facing rival Standard Chartered dropped by 45.4p to 928.1p.

IG market analyst David Madden said: “London-listed banks that have a large exposure to the Far East are doing the most damage; HSBC and Standard Chartered are keeping the London equity market in the red.”

Barclays avoided the sell-off and Lloyds Banking Group was up 1p to 79p after it emerged that the Government has sold another £500 million of shares in the part-nationalised lender. The rise in the share price comes with Lloyds expected to announce its first dividend in seven years later this week.

Other big risers in the FTSE 100 included British Airways owner International Airlines Group, which climbed 11p to 562p ahead of its results later this week.

And Primark owner Associated British Foods was higher after it reported more strong growth for its retail arm, with sales for the first half of the financial year set to be 16 per cent higher at constant currency rates.

With Primark and the rest of the business continuing to trade in line with expectations, shares rose 22p to 3058p, a gain of 1 per cent.

Outside the top flight, housebuilder Bovis Homes was higher after it posted a 69 per cent rise in annual profits to £133.5m, in line with expectations after an “excellent” year.

Shares were initially lower due to analyst concerns over the price of land but the stock later recovered to stand 3.5p higher at 951p. NEW YORK THE Nasdaq ended higher on Monday for a ninth straight day following g ains in Apple (AAPL.O), while the Dow and S&P 500 eased off recent record highs as lower oil prices dragged down energy shares.

Nasdaq’s winning run was its longest since September 2010, putting the index closer to its 5,132.52 all-time intraday high, reached in March 2000 just before the dot-com bubble burst. Giving Nasdaq its biggest boost were shares of Apple, which rose 2.7 percent to $133.00, another record close.

Oil prices fell, with WTI crude CLc1 off 2.7 percent at $49.45 a barrel on oversupply concerns and a stronger dollar, pushing the S&P energy index . SPNY down 0.4 percent.

The PHLX housing sector index .HGX was off 0.5 percent after existing home sales fell to their lowest in nine months in January.

Investors were also reluctant to make big bets before Federal Reserve Chair Janet Yellen’s semiannual testimony this week before the Senate Banking Committee, which will be closely watched for any indications on the timing of an interest rate hike.

The Dow Jones industrial average .DJI fell 23.6 points, or 0.13 percent, to 18,116.84, the S&P 500 .SPX lost 0.64 points, or 0.03 percent, to 2,109.66 and the Nasdaq Composite . IXIC added 5.01 points, or 0.1 percent, to 4,960.97. The Dow and S&P 500 eased off record highs from late last week, when a conditional agreement was reached by euro zone finance ministers to extend Greece’s bailout.