FTSE 100 movers: Barclays rallies on Q3 results; Coca-Cola HBC slumps again

(Sharecast News) - London's FTSE 100 was up 1% at 9,526.37 in afternoon trade on Wednesday. Barclays jumped to the top of the index as it launched an unexpected £500m share buyback, lifted its return on equity target and unveiled a plan to move to quarterly share buyback announcements.

The bank posted a 7% fall in third quarter profit to £2bn, partly due to a higher £235m provision relating to the UK motor finance scandal, taking the total impairment to £325m.

Russ Mould, investment director at AJ Bell, said: "If investors were looking for some reassurance after a tricky little spell for the banking sector then Barclays has provided it.

"Barclays was caught up in market concerns about the US private credit situation last week, with the company having some direct exposure to the collapse of sub-prime auto lender and car retailer Tricolor. It also has the broadest US exposure among its London-listed peers.

"However, the scale of the share buyback announcement unveiled today does not smack of a business in panic mode, nor does an increase in the guidance for the full year. A decision to move to quarterly buyback announcements is an interesting one and could mean shareholders come to expect a return of capital in this way on a regular basis.

"Barclays is undergoing a review of its loan portfolio, and the market may remain wary for some time until it has confidence that there are no more skeletons in the closet.

"Ultimately, this was a decent start to the banking sector earnings season in the UK as the industry tries to rebuild investor confidence."

Housebuilders Persimmon, Barratt Redrow and Berkeley Group all rose as the latest UK inflation reading raised rate cut expectations.

Coca-Cola HBC was on the back foot again, having slumped on Tuesday after announcing the acquisition of a 75% stake in Coca-Cola Beverages Africa (CCBA) for $2.6bn, valuing the Johannesburg-based business at $3.4bn.

FTSE 100 - Risers

Barclays (BARC) 381.80p 4.82% Persimmon (PSN) 1,233.50p 4.62% Barratt Redrow (BTRW) 401.00p 3.78% Entain (ENT) 813.20p 3.43% Kingfisher (KGF) 308.90p 3.38% SEGRO (SGRO) 714.40p 3.27% DCC (CDI) (DCC) 4,882.00p 3.21% Phoenix Group Holdings (PHNX) 672.00p 2.83% Berkeley Group Holdings (The) (BKG) 4,138.00p 2.78% Land Securities Group (LAND) 644.00p 2.63%

FTSE 100 - Fallers

Coca-Cola HBC AG (CDI) (CCH) 3,428.00p -2.22% Airtel Africa (AAF) 225.20p -0.97% Burberry Group (BRBY) 1,244.50p -0.96% Flutter Entertainment (DI) (FLTR) 18,605.00p -0.77% Bunzl (BNZL) 2,444.00p -0.73% Rolls-Royce Holdings (RR.) 1,127.50p -0.62% Hikma Pharmaceuticals (HIK) 1,773.00p -0.56% Unilever (ULVR) 4,616.00p -0.43% Beazley (BEZ) 887.50p -0.39% BT Group (BT.A) 185.60p -0.35%