Hargreaves Lansdown shares slump, while Smith & Nephew soar as U.K. stocks grapple with geopolitics

By Barbara Kollmeyer

Surging commodity prices lifted London stocks to positive territory on Tuesday, as geopolitical tensions swirled around investors.

The FTSE 100 index /zigman2/quotes/210598409/delayed UK:UKX +1.46% rose 0.4% to 7,518, also getting a lift as a strong dollar weighed on the British pound /zigman2/quotes/210561263/realtime/sampled GBPUSD -0.1589% down 0.4%. Investors were absorbing escalation in the Ukraine-Russia crisis after President Vladimir Putin on Monday announced he would officially recognize two separatist regions.

Investors had been hoping for a diplomatic solution and a summit this week between Putin and President Joe Biden, but Western nations were instead rolling out sanctions. The possibility remains that Russia will go ahead and fully invade Ukraine in a fluid situation.

Read: What war in Ukraine would mean for markets as Putin orders Russian troops to separatist regions

The crisis sent shares of energy companies soaring, with Shell stock /zigman2/quotes/206428183/delayed UK:SHEL +1.07% up 1%.

HSBC’s /zigman2/quotes/208272822/composite HSBC -3.27% /zigman2/quotes/203901799/delayed UK:HSBA -1.03% fourth-quarter net profit more than tripled from a year earlier, ending 2021 with a strong earnings turnaround, though investors focused on its caution on China and shares rose just 0.4%.

Smith & Nephew /zigman2/quotes/203117274/composite SNN -1.86% /zigman2/quotes/207176500/delayed UK:SN +2.48% shares surged 7% after the U.K. medical-technology group said it expects stronger growth in the second half of the year versus the first, though with global supply-chain issues continuing.

The company said profit more-than-doubled for 2021 due to revenue above pre-COVID-19 levels for its Sports Medicine & ENT and Advanced Wound Management franchises.

On the downside, shares of Hargreaves Lansdown /zigman2/quotes/201025857/delayed UK:HL +4.25% tumbled 15% after the London-listed retail-investment platform reported a fall in profit for the first half of fiscal 2022 on lower share-dealing revenue, and said that it would announce a new growth strategy.

/zigman2/quotes/210598409/delayed

Add to watchlist UK:UKX

FTSE 100 Index

UK : FTSE UK

7,128.38

+102.91 +1.46%

Volume: 224,745

July 6, 2022 10:43a

/zigman2/quotes/210561263/realtime/sampled

Add to watchlist GBPUSD

British Pound

US : Tullett Prebon

1.1939

-0.0019 -0.1589%

Volume: 0.0000

July 6, 2022 5:58a

/zigman2/quotes/206428183/delayed

Add to watchlist UK:SHEL

Shell PLC

UK : U.K.: London

£ 2,037.50

+21.50 +1.07%

Volume: 4.46M

July 6, 2022 10:43a

P/E Ratio

9.88

Dividend Yield

0.04%

Market Cap

£161.65 billion

Rev. per Employee

£2.59M

/zigman2/quotes/208272822/composite

Add to watchlist HSBC

HSBC Holdings PLC ADR

US : U.S.: NYSE

$ 31.61

-1.07 -3.27%

Volume: 3.10M

July 5, 2022 4:00p

P/E Ratio

11.22

Dividend Yield

3.92%

Market Cap

$128.61 billion

Rev. per Employee

$273,805

/zigman2/quotes/203901799/delayed

Add to watchlist UK:HSBA

HSBC Holdings PLC (UK Reg)

UK : U.K.: London

517.70 p

-5.40 -1.03%

Volume: 7.04M

July 6, 2022 10:43a

P/E Ratio

12.58

Dividend Yield

4.05%

Market Cap

£108.19 billion

Rev. per Employee

£200,552

/zigman2/quotes/203117274/composite

Add to watchlist SNN

Smith & Nephew PLC ADR

US : U.S.: NYSE

$ 27.45

-0.52 -1.86%

Volume: 1.25M

July 5, 2022 4:00p

P/E Ratio

22.89

Dividend Yield

2.66%

Market Cap

$12.03 billion

Rev. per Employee

$283,739

/zigman2/quotes/207176500/delayed

Add to watchlist UK:SN

Smith & Nephew PLC

UK : U.K.: London

£ 1,158.00

+28.00 +2.48%

Volume: 471,311

July 6, 2022 10:43a

P/E Ratio

26.66

Dividend Yield

0.02%

Market Cap

£9.93 billion

Rev. per Employee

£206,310

/zigman2/quotes/201025857/delayed

Add to watchlist UK:HL

Hargreaves Lansdown PLC

UK : U.K.: London

795.60 p

+32.40 +4.25%

Volume: 312,405

July 6, 2022 10:43a

P/E Ratio

14.16

Dividend Yield

4.88%

Market Cap

£3.66 billion

Rev. per Employee

£338,002