London midday: Shares stuck lower

28th Feb 2011 12:05

Shares remain under pressure as the turmoil continues in the Arab world. Company updates have also been given a slightly frosty reception.Oil prices have edged up again amid continuing turmoil in Libya and the spread of protests to the Gulf state of Oman. Brent crude for April delivery was above $114 a barrel earlier today. Reports say that Oman, which accounts for about 1% of global production, is still delivering oil unhindered.HSBC doubled its profits to over $19bn last year as bad debts tumbled and every trading division improved its performance. The UK's largest bank posted a pre-tax profit of $19bn, an increase of $12bn, or 169%, on 2009's $7.1bn, even though net interest income fell 3.2% to $39.4bn. The figure came in shy of market expectations of around $20.4bn, though and the shares are down.Associated British Foods, the foods group that also owns the Primark clothing retailer, is lower after it said its interim results will be in line with market expectations, but warned that UK consumer demand is slowing and margins will be under pressure from rising cotton prices in the second half as well as the first.Publishing giant Pearson is doing better. Profits before tax rose 28% to £670m from £523m the year before on sales that grew 10% to £5,663m from £5,140m in 2009. Revenue was up 8% using constant exchange rates, with growth seen in all of Pearson's businesses (Education + 9%, Penguin +2% and the FT Group +12%).Plastics disposables giant Bunzl is to continue with its acquisition spree despite some concerns over the health of the global economy. Bunzl made nine acquisitions last year, costing £126m and adding £154m in annualised revenue. Revenue overall increased by 4%, from £4.65bn to £4.83bn, in 2010. Underlying profits rose 7% from £258m to £275m, with pre-tax profits up to £225m from £216m.Tesco has signed an agreement to set up a joint venture to develop shopping malls in China. Half of the joint venture will be owned by a consortium of leading Asian investors including Singapore's Metro Holdings.In the FTSE 250, international recruitment firm Hays is a strong performer today after it shrugged off a workaday performance back in Blighty to post a sharp increase in interim profits. "18 countries around the world grew net fees by more than 25%," noted Hays chief executive Alistair Cox. Profit before tax and exceptional items jumped 60% to £48.6m from £30.4m.Senior is among today's laggards even after it upped sales to the military and defence, land vehicle and semi-conductor markets in 2010, pushing profits at the engineer to record levels. Adjusted profit before tax and one-offs grew by 36% to £65.3m in the 12 months to 31 December on revenue up 5% to £566.9m. Profit before tax increased 5% to £52.1m.Avis Europe is also lower. The car rental group made more in 2010 than it had done for five years and further progress is on the cards for 2011. Underlying profit before tax increased 45% to €51m on group revenue up 9% to €1.52bn. Rental income was up 3% at €1.2bn.Military decoy flares and mine detection firm Chemring said it remains confident for 2011 as its order book surges. Trading during the first three months to the end of January 2011 rose 38% from the same period in 2010 on a constant currency basis. Its order book has increased 64% to a new record of £944m.Depressed construction markets in the US and much of western Europe slowed growth at ground engineering specialist Keller last year, but revenue still beat market expectations. Revenue in 2010 rose to £1,070m from £1,038m in 2009, beating forecasts of £1,037m.Decent revenue growth from Ultra Electronics sparked a 15% increase in underlying profit at the defence electronics supplier last year. Profit before tax and exceptional items rose to £102.7m in 2010 from £89.5m the year before on revenue up 9% to £710m. Organic growth at constant currencies was 6%.FTSE 100 - RisersEssar Energy (ESSR) 519.00p +3.88%ARM Holdings (ARM) 626.00p +2.96%Schroders (SDR) 1,803.00p +2.68%Hammerson (HMSO) 462.60p +2.39%Schroders (Non-Voting) (SDRC) 1,424.00p +2.15%Land Securities Group (LAND) 765.00p +2.14%British Land Co (BLND) 580.50p +2.02%Johnson Matthey (JMAT) 1,863.00p +1.97%Pearson (PSON) 1,058.00p +1.63%Eurasian Natural Resources Corp. (ENRC) 972.00p +1.57%FTSE 100 - FallersAssociated British Foods (ABF) 967.50p -5.79%HSBC Holdings (HSBA) 679.50p -4.44%Next (NXT) 1,976.00p -2.37%African Barrick Gold (ABG) 577.00p -2.29%Invensys (ISYS) 349.80p -2.07%Whitbread (WTB) 1,764.00p -2.00%Morrison (Wm) Supermarkets (MRW) 277.20p -1.98%Capita Group (CPI) 727.00p -1.16%Royal Bank of Scotland Group (RBS) 45.16p -1.07%Smith & Nephew (SN.) 710.00p -1.05%FTSE 250 - RisersKenmare Resources (KMR) 40.50p +4.54%Spirent Communications (SPT) 156.70p +3.91%Hiscox Ltd. (HSX) 385.70p +3.79%Moneysupermarket.com Group (MONY) 90.65p +3.19%PZ Cussons (PZC) 353.60p +3.00%Taylor Wimpey (TW.) 38.90p +2.88%Barratt Developments (BDEV) 106.20p +2.21%Persimmon (PSN) 473.40p +2.20%Bovis Homes Group (BVS) 460.00p +2.13%Hays (HAS) 122.50p +2.08%FTSE 250 - FallersSenior (SNR) 147.30p -4.16%Imagination Technologies Group (IMG) 404.40p -4.06%Ultra Electronics Holdings (ULE) 1,718.00p -3.97%Ocado Group (OCDO) 192.10p -2.98%Dunelm Group (DNLM) 400.90p -2.76%Kesa Electricals (KESA) 127.10p -2.68%Rank Group (RNK) 128.40p -2.43%Morgan Crucible Co (MGCR) 285.70p -2.42%Enterprise Inns (ETI) 95.75p -2.40%Avis Europe (AVE) 205.00p -2.38%