Why Lloyds Banking Group PLC, Berkeley Group Holdings PLC and FirstGroup plc Should Beat The FTSE 100 Today

Lloyds Banking Group PLC (LON: LLOY), Berkeley Group Holdings PLC (LON: BKG) and FirstGroup plc (LON: FGP) are looking good.

| More on:

The content of this article was relevant at the time of publishing. Circumstances change continuously and caution should therefore be exercised when relying upon any content contained within this article.

When investing, your capital is at risk. The value of your investments can go down as well as up and you may get back less than you put in.

Read More

The content of this article is provided for information purposes only and is not intended to be, nor does it constitute, any form of personal advice. Investments in a currency other than sterling are exposed to currency exchange risk. Currency exchange rates are constantly changing, which may affect the value of the investment in sterling terms. You could lose money in sterling even if the stock price rises in the currency of origin. Stocks listed on overseas exchanges may be subject to additional dealing and exchange rate charges, and may have other tax implications, and may not provide the same, or any, regulatory protection as in the UK.

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More.

The FTSE 100 (FTSEINDICES: ^FTSE) looked like it was set to claw back a few tens of points today, but by mid-afternoon it’s only 13 points up to 6,511 having hit an eight-week closing low yesterday of 6,498. That takes the index of top UK shares down 140 points from last Friday’s finish at 6,651, and little short of a miracle now can save it from recording its fifth losing week in a row. Under 6,000 by Christmas, anyone?

But it’s not gloom for everyone, and some shares are perking up today. Here are three from the indices set to end the week positively:

Lloyds Banking Group

Lloyds Banking Group (LSE: LLOY) (NYSE: LYG.US) shares picked up 1p (1.3%) to 78p today after the bank announced it has offloaded a bunch of bad debts as part of its programme of minimizing its “non-core” assets.

Lloyds is to sell a portfolio of non-performing Irish retail mortgages to Tanager Limited, for £257m in cash. The portfolio generated a loss of £33m in 2012, so it’s good to see the back of it — but the sale proceeds won’t make any difference to the bottom line, as the bank has already made prior provisions against the assets.

Berkeley Group Holdings

A first-half report form Berkeley Group Holdings (LSE: BKG) gave the residential property developer a boost, sending its shares up 170p (7.4%) to 2,452p — and up 50% over the past 12 months.

With revenue up 19.7% to £821m, pre-tax profit gained 19.2% to £169.5m and basic earnings per share rose 22% to 100p. The firm announced a massive hike in its interim dividend, from 15p per share a year ago to 60p — a similar 60p payment at year-end would bring in a total yield of 4.9% on the current share price.

FirstGroup

Rail and bus operator FirstGroup (LSE: FGP) is our third for today, with a 5.2p (4.7%) rise to 116p, on the day the company announced the appointment of a new chairman.

John McFarlane will replace the incumbent Martin Gilbert as of 1 January, when Mr Gilbert will retire from the board. Mr McFarlane is currently chairman of Aviva and a non-executive director of Westfield Holdings.

FirstGroup shares slumped earlier in the year after a profit warning and a dividend cut, but since their June low of 90.3p the price has regained 25%.

Should you invest, the value of your investment may rise or fall and your capital is at risk. Before investing, your individual circumstances should be assessed. Consider taking independent financial advice.

> Alan does not own any shares mentioned in this article.

More on Investing Articles

Investing Articles

Could the JD Sports Fashion share price double in the next five years?

The JD Sports Fashion share price has nearly halved in the past five years. Our writer thinks a proven business…

Read more »

Bus waiting in front of the London Stock Exchange on a sunny day.
Investing Articles

If interest rate cuts are coming, I think these UK growth stocks could soar!

Falling interest could be great news for UK growth stocks, especially those that have been under the cosh recently. Paul…

Read more »

Investing Articles

Are these the best stocks to buy on the FTSE right now?

With the UK stock market on the way to hitting new highs, this Fool is considering which are the best…

Read more »

Petrochemical engineer working at night with digital tablet inside oil and gas refinery plant
Investing Articles

Can the Centrica dividend keep on growing?

Christopher Ruane considers some positive factors that might see continued growth in the Centrica dividend -- as well as some…

Read more »

Smiling family of four enjoying breakfast at sunrise while camping
Investing Articles

How I’d turn my £12,000 of savings into passive income of £1,275 a month

This Fool is considering a strategy that he believes can help him achieve a stable passive income stream with a…

Read more »

Person holding magnifying glass over important document, reading the small print
Investing Articles

2 top FTSE 250 investment trusts trading at attractive discounts!

This pair of discounted FTSE 250 trusts appear to be on sale right now. Here's why I'd scoop up their…

Read more »

Smiling young man sitting in cafe and checking messages, with his laptop in front of him.
Investing Articles

3 things that could push the Lloyds share price to 60p and beyond

The Lloyds share price has broken through 50p. Next step 60p? And then what? Here are some thoughts on what…

Read more »

Young female business analyst looking at a graph chart while working from home
Investing Articles

£1,000 in Rolls-Royce shares a year ago would be worth this much now

Rolls-Royce shares have posted one of the best stock market gains of the past 12 months. But what might the…

Read more »