Drugs giant AstraZeneca (AZN) sees its share price collapse in early trade on Thursday as word breaks of a failed clinical trial. The stock crashes nearly 16%, or 810.5p, to £43.025 as the group confirms that combining two immunotherapy drugs - durvalumab and tremelimumab - fails to help patients in advanced stages of lung cancer.
Despite that huge disappointment, and several blue-chip firms going ex-dividend today (when investors lose the right to the next payout), such as energy supplier SSE (SSE), the FTSE 100 remains in marginally positive territory. The index nudges around 8 points higher to 7,460 in early trading on Thursday.
Leading the positive FTSE pack is Diageo (DGE), as it posts higher full-year sales and profits for the 12 months to 30 June. The Smirnoff-owner also raises its margin growth target, saying productivity initiatives were delivering ahead of expectations, news that powers the stock to the top of the FTSE leader board, up a little more than 6% to £24.15.
Also upbeat is fags firm British American Tobacco (BATS). It reports higher first half sales and profits on Thursday, helped by the weak British currency, but also saw declining volume as people continue to smoke less. The share price rallies 2.2% to £54.40.
Tracking lower is Lloyds Banking (LLOY) as it reveals plans to repay nearly £300m to customers over mortgage arrears policies, and sets aside nearly £700m more for payment protection insurance (PPI) claims. That drags on the shares, down 1.75% to 67.86p, offsetting news that the bank posted half year pre-tax profits of £2.5bn, 4% higher than last year.
Royal Dutch Shell (RDSB) posts half year results including a £0.47 per share dividend. That's about what investors were anticipating, and explains why the shares are largely flat at £21.115 on Thursday.
Staying in the resources and dividend space, investors are relieved that mining giant Anglo American (AAL) has flagged a return to the dividend list at last. That comes alongside interim results for the group.
Elsewhere, tour operator Thomas Cook (TCG) reveals strong demand for summer holiday bookings is likely to overflow into the winter season. The company also reaffirms that full year operating profit will be in-line with forecasts, sparking a 2.3% share ptice gain to 105.5p.
Shares in Britain's largest bookmaker Ladbrokes Coral (LCL) adds 2% to 121.5p as the company reports a rise in first half group net revenue and says it expects to find higher savings from the Coral takeover deal.
But its misery for shareholders in London-focused estate agent Foxtons (FOXT) as the company posts a 63.8% fall in first half profit. Foxtons reckons it has been hurt by slowing demand and increased political uncertainty.
