Lloyds leads the way as earnings reports keep FTSE on the up

FTSE 100:5,567.34 (+56.52) Mid-250:10,419.34 (+117.10) Small Cap:2,842.06 (+11.94)

A RAFT OF earning reports from some of Britain’s biggest companies yesterday ensured the London market overcame increased uncertainty in the euro zone.

The FTSE 100 Index was 56 points higher after a busy session for corporate results, with Marks Spencer, Vodafone and Lloyds Banking all updating the market.

Shares in Lloyds Banking topped the FTSE 100 Index risers board, despite a dip in third-quarter profits and a warning it may miss medium-term targets.

Lloyds was up 4 per cent, or 1.2p, to 28.9p, as analysts noted an improved trend in the bank’s bad debts and said the absence of any shocks in the third quarter results was a welcome development.

MS shares lost earlier gains to stand 2.5p lower at 323.5p after the company saw its margins squeezed, but chief executive Marc Bolland said this was a price worth paying given the current trading climate.

Shares had been higher after underlying profits of £315.2 million at the high street bellwether met City forecasts and the company reported a solid start to the second half of its trading year.

Primark owner Associated British Foods has also been affected by the rise in cotton prices, causing profits in its retail arm to fall by 8 per cent to £309 million in the year to September 17th.

AB Foods has pledged to continue with Primark’s expansion, while group profits were up 1 per cent to £920 million as it benefited from higher margins in its sugar production arm. AB Foods shares rose 16p to 1128p.

Vodafone rose 3.1p to 176p after it said operating profits for the full year were likely to be in the upper half of the £11 billion to £11.8 billion range estimated earlier this year.

One of the few firms to miss out on a results boost was InterContinental Hotels, despite reporting a 19 per cent rise in third quarter profits and it remaining cautiously optimistic about prospects.

Shares were 22p lower at 1073p amid uncertainty over the sale of a flagship property in New York.

The biggest Footsie risers were Lloyds Banking Group up 1.2p at 28.9p, British Land up 19.2p, Burberry up 49p at 1402p and Petrofac up 47p at 1444p.

The biggest fallers were AstraZeneca, down 93.5p at 2873p, Schroders, off 25p at 1181p, Intercontinental Hotels down 22p at 1073p and International Airlines Group down 2.9p, at 146.9p. – (PA)