FTSE holds ground
A shortage of major corporate news and the closure of US markets for the Thanksgiving holiday kept the FTSE 100 Index near its opening mark today.
The lack of direction from Wall Street meant the Footsie consolidated most of its recent gains to stand 14 points lower at 4212.1 at mid-morning.
Royal Bank of Scotland’s confirmation that existing shareholders had declined to buy new stock in its latest £15bn (€18bn) share offering resulted in the company’s shares slipping another 2p to 53p.
The latest fall widened the Government’s paper losses after it emerged today the Treasury will own almost 58% of the ailing banking group.
Other players in the banking sector registered modest gains, with HBOS ahead 2.4p at 95.4p and merger partner Lloyds TSB up 3.1p at 167.1p.
BSkyB led the risers board after announcing its intention to carry on the fight against a ruling that it must reduce its 17.9% stake in broadcaster ITV. It has asked for permission to appeal to the Court of Appeal.
BSkyB rose 18.75p to 433p but ITV fell 6% or 2.25p to 35.5p in the FTSE 250 Index.
Aviva followed BSkyB on the risers board after it announced the sale of RAC Auto Windscreens to Germany’s Arques Industries. Shares were 4% higher, up 14.25p to 394.75p.
One of the biggest gains in the FTSE 250 Index came from Taylor Wimpey as sentiment continued to improve in the wake of yesterday’s better-than-expected house price figures from building society Nationwide. Shares were up 10% or 1p to 11p.
Shares in retailer JJB Sports were 8% higher at one stage after the Times newspaper said rival JD Sports Fashion was considering a bid among its options towards the retailer. The excitement faded as JJB later lost the gains to stand 0.25p higher at 28.25p, with JD Sports Fashion unchanged at 233p.
