UK stocks eased back after last week’s strong finish, with the FTSE 100 index giving up 21 points or 0.3% to 7,303. Banks, Household Goods, Mobile Telecoms and Tobacco were the sectors weighing the most on the index.

Global banking giant HSBC (HSBA) delivered a disappointing third quarter earnings update, with profits down 24% to $3bn, and abandoned its Return on Tangible Equity target of 11% for 2020.

The bank said that ‘the revenue environment is more challenging than in the first half and the outlook is softer than we anticipated’. Shares were the worst performer on the FTSE 100, falling 3.3% to 597p.

Ukraine-based iron ore miner Ferrexpo (FXPO) announced that chief executive Kostyantin Zhevago would step aside temporarily ‘to focus on resolving certain matters in Ukraine’.

Chris Mawe, the current chief financial officer, will take over Mr Zhevago’s responsibilities for now. Shares in Ferrexpo ticked up 1% to 134p.

Oil and gas exploration firm Cairn Energy (CNE) released an update on its 2015 law suit against the Indian government over retrospective taxes.

Cairn said it now expects a decision in 2020 and that it has ‘a high level of confidence in the merits of its claims in the arbitration’ for losses of more than $1.4bn.

However, an update on its Mexican drilling operations was less positive. The first test well, which was awarded to a consortium including Cairn in 2017, came up dry and will be abandoned. Drilling on the second test well is due to start next month. Shares sank 8% to 177p.

Infrastructure group Costain (COST) announced a raft of new road-building and management contracts in the south-east and north of England employing its enhanced highways technology, designed to improve road safety and relieve congestion. Shares coasted up 1% to 174p.

Shares in online womenswear brand Sosandar (SOS) jumped 23% to 19.75p after a stellar half-year trading update which saw revenues grow 53% in the six months to 30 September.

Sales in September alone were up 112% on the previous year, and October has already set a new monthly record before the month has even finished.

Instant-service equipment firm Photo-Me (PHTM) slipped 5% to 85p due to continued pressure on its UK Identification business. As well as delays over Brexit, the decision by the government to allow photos taken on smartphones and other devices to be used for passport ID has impacted revenues.

Shares in AIM-listed leak-detection firm Water Intelligence (WATR:AIM) surged 11% to 294p after it reported a 34% rise in third quarter revenues and predicted full year earnings ‘comfortably in line with expectations’.

For a full list of risers and fallers click here.

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Issue Date: 28 Oct 2019