HSBC, Begbies Traynor and Fidessa

“The FTSE 100 started the trading week on front foot following Asian stocks which were generally higher this morning. Markets in New York were mixed at the close on Friday,” says AJ Bell Investment Director Russ Mould.

“HSBC was one of the blue-chip’s biggest risers after it announced a 5% increase in first half pre-tax profits and a share buyback worth up to $2bn. The group’s results were ahead of market forecasts and were underpinned by further growth in its international network. HSBC has maintained momentum in Asian insurance and asset management with annualised new business premiums and assets under management up 14% and 17% respectively. HSBC’s shares were up by more than 3.6%.

“Insolvency specialist Begbies Traynor’s latest research has shown a 25% rise in the number of companies experiencing ‘significant’ financial distress. Sectors facing the largest increase in distress include property and construction, which saw substantial rises of 32% and 22% respectively. The group’s figures showing 28,259 real estate businesses and 40,495 construction in a state of 'significant' financial distress, provide further evidence of a slowdown in the UK housing and construction markets.

“Software and services provider Fidessa saw solid revenue growth across all business lines and regions in the six months to the end of June. There has been little change in market conditions faced by Fidessa’s customers, with political uncertainty, structural and regulatory changes all continuing to have an impact. But many of these structural and regulatory drivers are generating opportunities for the group and the delays in customer decision making which affected the first quarter have started to ease slightly. Fidessa’s shares were up by more than 1.4% in early trading.”

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