Banks make further gains on FTSE
Further gains for the embattled banking sector helped keep the London market in positive territory today.
The FTSE 100 Index stood 42.2 points up at 6391.3 by mid-morning as the share rebound from financial stocks saw banks litter the risers board.
Blue chips were also lifted by overnight rises on Wall Street amid continued speculation of another cut in American interest rates.
On the Footsie, Barclays rose 3%, or 13.5p to 553.5p, followed by Royal Bank of Scotland, up 14p to 457.25p. Halifax Bank of Scotland also rose, up 13p at 798p.
However, not all the banks were in the black, with stricken lender Northern Rock top of the fallers board with a drop of 8%, or 9.1p to 107.6p.
The fall came amid speculation that investment group Olivant could table a rival approach for the mortgage lender in the next week.
Alliance & Leicester also returned some gains seen yesterday, as the stock slipped 4.5p to 681.5p.
Broadcaster BSkyB followed Northern Rock with a 3% decline after a downgrade from Goldman Sachs. The stock shed 20p to 614.5p.
Pub group Mitchells & Butlers was enduring a second tough day on the Footsie, down another 5%, or 28.5p to 557p, adding to the drop yesterday on flat profits and a downbeat outlook.
But heavily weighted miners were lending support to the top flight, largely thanks to a note from Credit Suisse saying Xstrata may look to take over rival Anglo American as platinum prices rally. Shares leapt 94p to 3407p.
Elsewhere, brewer Marston’s gained 2% despite reporting a 3% dip in annual profits. The decline had been expected following the summer floods and Marston’s offered some encouragement by reporting a healthy start to the new financial year. Shares were up 5.5p at 329p.
