Market Round-Up: Investors Look on the Bright Side Amid Heavy Losses

Strategic Insights -

Despite combined losses from Royal Bank of Scotland (RBS) and British Airways (BA) reaching £1.79 billion in the first six months of the year, investors attempted to find solace in the market. The FTSE 100 index saw a slight increase of 10.49 to 5136.13, thanks in part to a 61/4p rise in BA's stock to 1981/4p. However, RBS continued to trade cautiously, with 120 million shares changing hands, despite a 0.4p increase in its stock price to 35.6p.

Key Takeaways:

  • The combined losses from RBS and BA reached £1.79 billion in the first six months of the year, a significant burden on investors.
  • The FTSE 100 index saw a slight increase of 10.49 to 5136.13, with BA's stock rising by 61/4p to 1981/4p.
  • RBS's stock price increased by 0.4p to 35.6p, with 120 million shares traded on the market.
  • JPMorgan has raised its target for Barclays shares from 220p to 280p, but continues to rate the shares underweight.
  • Citigroup has a buy rating on Lloyds Banking Group, following the government's approval for the bank to raise £21 billion of new capital.
  • The bank's shares rose by 21/2p to 851/2p, with investors optimistic about the bank's future prospects.
  • The gains among the banks helped to offset falls for the oil explorers, with BP, BG Group, and Royal Dutch Shell all experiencing declines in their stock prices.
  • Supermarket giant J Sainsbury fell 21/2p to 3321/4p, while Tesco shed 3p to 4151/4p, as some of the defensive stocks that had attracted support earlier in the week turned easier.
  • The big drug stocks also came under pressure, with GlaxoSmithKline down 121/2p at 12071/2p and AstraZeneca falling 181/2p to 2683p.
  • S&P Equity Research has raised its recommendation on BHP Billiton from hold to buy, citing the miner's low-risk production growth and improving outlook for iron ore and aluminium prices.
  • Miners generally enjoyed a better day, with Vedanta Resources adding 1p at 2244p, but Mexican miner Fresnillo shaded 6p to 835p.

Statistics:

  • £1.79 billion: combined losses from RBS and BA in the first six months of the year
  • 10.49: increase in the FTSE 100 index
  • 5136.13: new FTSE 100 index level
  • 61/4p: rise in BA's stock price
  • 1981/4p: new stock price for BA
  • 0.4p: increase in RBS's stock price
  • 35.6p: new stock price for RBS
  • 120 million: number of shares traded in RBS
  • 220p: JPMorgan's previous target for Barclays shares
  • 280p: JPMorgan's new target for Barclays shares
  • 3413/4p: current share price for Barclays
  • 91/2p: rise in Barclays' stock price
  • 21/2p: rise in Lloyds Banking Group's share price
  • 851/2p: new share price for Lloyds Banking Group
  • 32.4 million: number of existing shares placed by London Mining
  • 1921/4p: placement price for London Mining shares
  • 2051/2p: opening price for London Mining shares
  • 703/4p: new share price for Petra Diamonds
  • 120p: target price for Petra Diamonds set by Cannacord Adams
  • 4351/4p: new share price for Persimmon
  • 4231/4p: new share price for Bovis Homes
  • 140p: new share price for Barratt Developments
  • 11.4p: rise in Taylor Wimpey's share price
  • 4151/4p: new share price for Tesco

Sources:

  • "Market Round-Up: Investors Look on the Bright Side Amid Heavy Losses" (Standard)
  • "JPMorgan raises Barclays target to 280p" (Standard)
  • "Citigroup: Lloyds Banking Group on the Right Track" (Standard)
  • "BP, BG Group, and Royal Dutch Shell fall as JPMorgan recommends shorting oil stocks" (Standard)
  • "Defensive stocks turn easier" (Standard)
  • "S&P Equity Research raises BHP Billiton to buy" (Standard)
  • "Cannacord Adams begins coverage of Petra Diamonds with a buy rating" (Standard)