HSBC shares helps Footsie edge higher

Market report Perry Gourley

The FTSE 100 managed to record a modest gain despite the pound hitting a 10-month high as political uncertainty in Washington weighed on the US dollar.

The index ended the day up just 3.63 points at 7,372 with stocks including HSBC helping it stay in the black.

HSBC shares rose 13.4p to 757p after the banking giant announced a share buy-back programme and reported a 5 per cent rise in pretax profits.

Astrazeneca climbed 87.5p to 4,569p after saying it had secured a “breakthrough” therapy designation from US regulators for its lung cancer drug Imfinzi.

However, the drug giant’s shares failed to claw back losses felt last week, sparked by a setback in a separate lung cancer treatment trial.

Tobacco shares continued to suffer following last week’s news that the US Food and Drug Administration (FDA) said it may force companies to cut nicotine in cigarettes down to nonaddictive levels. Imperial Brands ended the day down 195.5p to 3,120p, while British American Tobacco fell 246p to 4,713.5p,

Insurer Hiscox tumbled 55p to 1,298p after reporting that currency headwinds caused pretax profits to halve to £102.6 million in the six months to 30 June.

When stripped of currency effects, the insurer’s pre-tax profits rose 12.5 per cent to £133.5m.

The biggest risers on the FTSE 100 were Severn Trent, up 88p at 2,240p, United Utilities, up 26p at 897.5p, Hargreaves Lansdown ,up 38p to 1,380p, and Standard Chartered ,up 19.6p to 846.7p. The bar operator saw its shares soar after it said it had received a possible offer for the company at 200p a share from the Stonegate Pub Company. The energy broker saw its shares hammered after it said it expects to report full-year revenue below expectations and said it will not pay a dividend.