Britain's FTSE pulled lower as StanChart and BP drop

Tue, 01st Nov 2016 16:59

* FTSE 100 index down 0.5 pct at close

* StanChart and BP among top fallers

* Precious metals miners lead (Adds detail and updates with closing prices)

By Kit Rees and Atul Prakash

LONDON, Nov 1 (Reuters) - Britain's top share index fellslightly on Tuesday, with Standard Chartered and BP leading the broader market lower after their resultsfailed to impress investors.

Standard Chartered dropped 5.4 percent, the top faller onthe blue-chip FTSE 100, after the bank reported adecline in third quarter income and warned of compliancetroubles ahead.

Oil major BP dropped 4.5 percent after reporting afall in third-quarter earnings. Underlying replacement costprofit, its equivalent of net income, fell to $933 million from$1.8 billion a year earlier.

"This is the ninth consecutive quarter of decline in BP'searnings, and it is hard to see the end of the tunnel given thechallenging dynamics in the oil market," said Ipek Ozkardeskaya,analyst at London Capital Group.

In contrast, shares in Royal Dutch Shell rose 3.8percent, among the top FTSE gainers, after reporting an 18percent rise in underlying net profit, beating forecasts.

The FTSE 100 index was down 0.5 percent at 6,917.14 pointsat its close. The index is up more than 10 percent so far thisyear.

Britain's mid-cap FTSE 250 index closed 0.1 percentlower.

Weir Group fell 2.4 percent after the pipe andvalve maker trimmed its 2016 profit forecast due to weakerdownstream oil and gas markets and tougher conditions in theMiddle East.

Precious metals miners Polymetal International andFresnillo jumped 5.3 percent and 4.8 percentrespectively, the top gainers on the mid-cap index after theprice of gold hit a one-month high on uncertainty about theoutcome of the U.S. presidential election.

Price comparison site Moneysupermarket.com rosemore than 10 percent after saying that growth in sales ofinsurance helped third-quarter revenue rise 12 percent, givingit confidence in its outcome for the year. (Reporting by Atul Prakash; Editing by Richard Balmforth andJohn Stonestreet)