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Important information: The value of investments can go down as well as up so you may get back less than you invest. Investors should note that the views expressed may no longer be current and may have already been acted upon. This is a third-party news feed and may not reflect Fidelity’s views.

FTSE 100 movers: BT gains as it sells iconic London tower; HSBC tumbles

(Sharecast News) - London's FTSE 100 was down 0.7% at 7,663.29 in afternoon trade on Wednesday. BT Group was among the gainers after saying it had agreed to sell the BT Tower to MCR Hotels for £275m.

MCR plans to preserve the BT Tower "as an iconic hotel, securing its place as a London landmark for the future," it said.

On the downside, HSBC tumbled as it posted a record jump in annual profits and announced a $2bn share buyback but missed forecasts as it was forced to take a $3bn hit from its exposure to a Chinese bank.

The Asia-focused lender said full-year pre-tax profit rose 78% to $30.3bn driven by high global interest rates, but below the $34.1bn average estimate of brokers compiled by the bank.

Danni Hewson, head of financial analysis at AJ Bell, said: "The company has been stung by a $3 billion charge on its stake in a Chinese bank and write-downs associated with commercial real estate and the sale of its French business. That's made the results a bit of a mess and led to a miss on full year forecasts.

"The outlook is also a bit of fudge with the company expecting to hit previously guided returns in the mid-teens for 2024, but only once some one-offs are stripped out. Costs are moving higher and loan losses are also going in the wrong direction from the bank's perspective.

"Amid all the noise, news of a $2 billion share buyback has been lost which feels a little unfair given the company will have returned upwards of 10% of its market valuation in dividends and buybacks in respect of 2023."

Rio Tinto was in the red as it said that commodity price movements led to a $1.5bn hit to underlying profits in 2023, though results were partly offset by a stronger US dollar and lower energy prices.

Glencore lost ground as it reported a halving of its full-year adjusted earnings before interest, tax, depreciation and amortisation amid lower commodity prices.

FTSE 100 - Risers

Convatec Group (CTEC) 247.20p 2.06% BT Group (BT.A) 108.55p 1.59% B&M European Value Retail S.A. (DI) (BME) 525.00p 1.47% International Consolidated Airlines Group SA (CDI) (IAG) 149.85p 1.46% Beazley (BEZ) 580.50p 1.22% Frasers Group (FRAS) 840.50p 1.14% St James's Place (STJ) 661.20p 1.13% Halma (HLMA) 2,306.00p 1.05% InterContinental Hotels Group (IHG) 8,410.00p 0.91% CRH (CDI) (CRH) 6,192.00p 0.85%

FTSE 100 - Fallers

HSBC Holdings (HSBA) 585.40p -9.07% Centrica (CNA) 130.35p -2.29% Croda International (CRDA) 4,892.00p -2.14% Entain (ENT) 904.40p -2.02% Ocado Group (OCDO) 521.40p -1.96% Flutter Entertainment (DI) (FLTR) 16,330.00p -1.57% WPP (WPP) 777.00p -1.42% Rio Tinto (RIO) 5,161.00p -1.32% Glencore (GLEN) 385.45p -1.27% Smith (DS) (SMDS) 320.10p -1.26%

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Important information: This information is not a personal recommendation for any particular investment. If you are unsure about the suitability of an investment you should speak to one of Fidelity’s advisers or an authorised financial adviser of your choice. When you are thinking about investing in shares, it’s generally a good idea to consider holding them alongside other investments in a diversified portfolio of assets. Past performance is not a reliable indicator of future returns.

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