Markets
Market update (PM): Schroders slumps on interim statement
Rob Langston, 05 May 2011
Asset manager Schroders (SDR.L) was the biggest faller at the close of trading as its share price plunged after an interim management statement this morning.
The group had reported a slowdown in intermediary fund flows as a result of the impact on retail investors. However, it advised of 'good opportunities' in its institutional business.
Schroders added just £200 million of fund flows through its intermediary channel between 31 December 2010 and 31 March 2011.
The group saw its share price dive by 9.2 per cent to 1,700p, while its non-voting share class (SDRC.L) dropped 8.1 per cent to 1,398p.
It also reported a loss before tax in its group segment of £200,000 compared with a profit of £3 million in the first quarter of 2010, this was more than offset by profits of £97.3 million and £6.7 million in its asset management and private banking business.
The release of the interim management statement saw Evolution Securities downgraded the asset manager to 'add' status.
Lloyds Banking Group (LLOY.L) continued to fall at the close of trading, dropping by 8 per cent to 53.38p. It had earlier set aside £3.2 billion for potential payment protection insurance claims, resulting in a statutory pre-tax loss of £3.5 billion for the first quarter.
Essar Energy (ESSR.L) dropped 5.2 per cent to 427.6p, while silver miner Fresnillo (FRES.L) fell 4.6 per cent to 1,445p.
The biggest riser was Carnival (CCL.L), which increased by 4.2 per cent to 2,550p, on the back of falling oil prices. It was joined by BA and Iberia owner International Consolidated Airlines Group (IAG.L) which rose by 2.7 per cent to 246p.
Medical devices manufacturer Smith & Nephew (SN.L) saw share price rise by 3 per cent to 680p, microchip manufacturer Arm Holdings (ARM.L) increased by 1.6 per cent to 567p, and Guinness brewer Diageo tagged on 1.5 per cent to its share price to close at 1,230p.
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