An update letdown from banking heavyweight HSBC and declines in big mining stocks on metal price weakness weighed on the UK’s top share index yesterday.

The FTSE index ended the session flat at 7,246.77 points, lagging a broadly positive European market, while Britain’s mid-cap index added 0.8 per cent, helped by news of a possible bid for software firm Fidessa.

HSBC fell three per cent after Europe’s biggest lender by market value reported a jump in annual pre-tax profit that missed expectations and unveiled a plan to raise $7 billion over the next four months to bolster its capital base.

Investec analysts confirmed their “neutral” rating on the stock, saying results were “all-in-all disappointing” and calling the absence of a share buyback a negative surprise.

Although results fell short of expectations, ETX Capital analyst Neil Wilson said the performance from HSBC was still strong and showed the bank was beyond a recovery phase.

HSBC has undergone a painful restructuring under CEO Stuart Gulliver, who was to step down yesterday after more than seven years at the helm and will be replaced by company veteran John Flint.

HSBC shares have risen about 80 per cent from the seven-year lows they hit in April 2016, helped by the restructuring and a supportive market environment.

Mining stocks tracked declines in copper prices. BHP Billiton  dropped 4.6 per cent as a solid-looking update failed to lift shares that have risen around eight per cent over the last year.

BHP reported a 25 per cent rise in underlying half-year profit, helped by robust metals prices, and handed an extra $800 million to shareholders as it forecast rising cash flows in the second half.

Traders said its dividend was stronger than expected but the market was expecting more in terms of profit growth.

InterContinental Hotels Group was another big faller on the FTSE, down 2.7 per cent. The operator of Crowne Plaza and Holiday Inn said it would not pay out any additional capital to investors in 2018 as it announced a better-than-expected profit and a new strategy to speed growth.

Reckitt Benckiser fell for a second day as brokers cut their price targets after a disappointing update and a vague outlook on Monday that sent its shares down more than six per cent.

Top gainers on the FTSE were shares in Evraz, up five per cent after the steelmaking and mining company inked a $2 billion supply deal with Russia.

Among the mid caps, Fidessa soared 22.5 per cent on news Swiss banking software supplier Temenos is in advanced talks to buy the British trading software provider in a cash deal valuing it at about £1.41 billion.

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