FTSE 100 movers: Lloyds surges on Supreme Court ruling; Convatec slumps

(Sharecast News) - London's FTSE 100 was up 0.4% at 9,104.69 in afternoon trade on Monday. Lloyds surged to the top of the index after the Supreme Court ruled in favour of banks in the car finance case.

On Friday, the Supreme Court announced in its long-awaited ruling that hidden commissions from lenders to dealers on car loans were not unlawful. The ruling means that millions of motorists will not be able to claim compensation.

Following the ruling, the Financial Conduct Authority said it will consult on running a compensation scheme.

In a statement on Sunday, the FCA estimated that most individuals would probably receive less than £950 in compensation.

Lloyds said it would keep its £1.2bn motor finance provision under review but that there was unlikely to be any material changes.

Barclays, which had set aside £90m to cover any potential motor finance payouts, also gained.

Danni Hewson, head of financial analysis at AJ Bell, said: "Lenders will be relieved that they've avoided having to potentially pay out millions of pounds in compensation to motorists who hadn't been fully informed about the levels of commission being paid to their dealers.

"Most people buying a car in the UK take out finance and most won't have scrutinised the small print before pocketing the keys and driving off the forecourt and it was this lack of transparency which formed the basis for the original court case.

"But the Supreme Court was clear that an earlier ruling in favour of motorists was wrong, that the commission paid to dealers was neither a bribe nor could anyone have expected a dealer not to have a commercial interest in selling cars."

On the downside, medical products firm Convatec slumped after saying that chief executive Karim Bitar would be taking a medical leave of absence.

FTSE 100 - Risers

Lloyds Banking Group (LLOY) 81.94p 8.19% NATWEST GROUP (NWG) 524.60p 2.54% Barclays (BARC) 364.05p 2.07% Rolls-Royce Holdings (RR.) 1,084.50p 1.83% Legal & General Group (LGEN) 258.40p 1.73% M&G (MNG) 260.90p 1.72% Aviva (AV.) 644.80p 1.64% St James's Place (STJ) 1,318.00p 1.54% Antofagasta (ANTO) 1,919.00p 1.53% Intertek Group (ITRK) 4,680.00p 1.52%

FTSE 100 - Fallers

Convatec Group (CTEC) 227.20p -1.65% Next (NXT) 12,150.00p -1.46% Haleon (HLN) 360.10p -1.45% Croda International (CRDA) 2,591.00p -1.37% Smith & Nephew (SN.) 1,142.00p -1.25% IMI (IMI) 2,150.00p -1.19% Rentokil Initial (RTO) 357.40p -1.16% Diageo (DGE) 1,803.00p -1.04% Weir Group (WEIR) 2,480.00p -0.88% Ashtead Group (AHT) 4,957.00p -0.80%