Tuesday, November 29, 2022 at 5:27 PM
The FTSE 100 index in London was boosted today by investors flocking to HSBC after it confirmed that it had sold its Canadian business for £8.4 billion.
The main index of the capital rose 0.51 percentage points to 7,512 points. Meanwhile, the FTSE 250 medium focused domestic index fell 0.55 percent, to 19,186.16.
HSBC, Britain’s largest bank, announced that it has sold its entire Canadian operation, which includes 130 branches and more 780,000 commercial and business customers, to the Royal Bank of Canada.
The news sent its shares close to the top of FTSE 100, gaining 4.44 per cent.
Analysts see the sale of the company as a way to appease Asian investor Ping An, a Chinese insurance company that is urging HSBC, the group’s profit engine, to locate its business and operations in China and Hong Kong.
“The recent decision to cancel the dividend after pressure from UK regulators has not gone down well with shareholders in Asia,” said Michael Hewson, chief market analyst at CMC Markets UK.
He said that the sale could be “an arbitrator of things to come.”
The FTSE 100 index was also higher for industrial companies after rebounding commodity prices.
Antofagasta, Rio Tinto and Anglo American miners contributed more than 2.7 %.
The shares of the huge oil company BP jumped 1.76%, while Shell shares jumped 1.69%.
Commodities were affected by concerns about the aggressive response by the Chinese authorities to protests of the sudden lockdown.
The British pound was generally flat against the US dollar.
The UK’s borrowing costs have fallen.
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