FTSE Close: FTSE 100 closes lower, Barclays leads

Stock prices in London closed lower on Tuesday, following a quiet Monday of trading. The FTSE 100 index closed down 0.1%, ending the day at 7,719.21. The FTSE 250 index dropped 0.6% to 19,109.63, while the AIM All-Share index declined 0.4% to 753.05.

Barclays led the gains in the FTSE 100 on Tuesday, with its share price rising by 8.6% by market close. The bank reported a 1.7% increase in total income for 2023 to £25.38 billion, up from £24.96 billion the previous year. Pre-tax profit fell 6.5% to £6.56 billion, down from £7.01 billion, as credit impairment charges widened to £1.88 billion from £1.22 billion. In Q4, income was 3.5% lower at £5.60 billion and pre-tax profit plunged 92% to £110 million following restructuring costs of £927 million.

Barclays announced the total dividend will rise to 8.0 pence per share, up from 7.25p last year. It also plans to launch a new £1.0 billion share buyback programme. Between 2024-2025, Barclays is targeting at least £10 billion in capital distributions to shareholders.

Other banks saw gains following Barclays’ earnings update, with NatWest, Lloyds and HSBC rising 1.7%, 1.8% and 0.9% respectively. Meanwhile, miners Rio Tinto and Anglo American were the worst FTSE 100 performers, dropping 3.7% and 3.3% by market close.

In the FTSE 250, public transportation provider Mobico (formerly National Express) fell 9.6%. The company announced it would delay releasing full-year results, previously scheduled for February 29th, due to the need for increased provisions related to its German rail business. Mobico did not set a new date but said annual results should come before end of March.

Ferrexpo’s shares declined 6.3% after it withdrew its previously proposed interim dividend of 3.3 US cents per share. The decision was attributed to a claim against its Ukrainian subsidiary Ferrexpo Poltava Mining.

Amongst small-cap stocks, fashion retailer Superdry saw its share price spike 17% on reports that Davidson Kempner, a US investment firm, is in talks with Superdry co-founder and CEO Julian Dunkerton regarding potential financing for a takeover bid. Earlier this month, Dunkerton had confirmed discussions with possible partners to fund an offer.

On the Alternative Investment Market (AIM), shares of Horizonte Minerals crashed 59%. The nickel development firm revealed a preliminary capital expenditure estimate of over $1.0 billion for its Araguaia nickel project in Brazil. This equates to an 87% increase over the initial $537 million budget.

FTSE All-Share Gainers

Superdry 17.38%, Close Bros 15.74%, Barclays 8.59%, Nb Global 8.51%, Dominos 5.88%, Vh Global Sust. 5.67%, XP Power 5.57%, InterContinental Hotels 5.36%, Motorpoint 4.96%, Octopus Energy 3.86%.

FTSE All-Share Fallers

Seraphim Sp -9.72%, Mobico Group -9.6%, Cab Payments -6.78%, Ferrexpo -6.3%, RHI Magnesita -5.19%, Card Factory -5.09%, Capricorn Energy PLC -4.93%, Xaar -4.79%, Ceres Power -4.71%, Petra Diamonds -4.65%.