Barclays recovery boosts FTSE
Investors backed Barclays today as the bank led a revival of financial stocks in the London market.
The banking giant, which suffered last week after emergency borrowing from the Bank of England and fears over its exposure to US sub-prime mortgages, gained 3% to stand 18.5p higher at 632p.
The wider FTSE 100 Index gained 23.8 points to 6327.1 by mid-morning amid more positive sentiment over the financial sector.
Barclays, which gained from a weekend drive to reassure markets from the bank’s big-hitters, was joined at the top of the Footsie risers board by Standard Life, up 6.75p to 307p. The insurer is due to post a healthy increase in margins and profits tomorrow.
Other banking stocks making advances included Royal Bank of Scotland, which was 9p ahead at 583.5p as the sale of its Southern Water utility business gathered pace.
Meanwhile investment firms Schroders and Invesco – also sufferers in recent market turmoil – gained 20p to 1344p and 6.5p to 609p respectively.
British Energy was another strong starter on more weekend reports that the Government could sell its remaining 39% stake in the business. Although played down by analysts, the energy firm ticked up 6p to 469.5p on the possibility.
But other players in the energy sector were on the back foot amid flat oil prices and news that China was planning a major expansion of its refineries to reduce reliance on imports. Oil major BP was down 1.5p at 556p, while BG Group was off 3.5p at 790p.
Broadcaster BSkyB also slipped back 2.5p to 673p as broadband rival BT pushed customer numbers past four million.
In the FTSE 250, music and books chain HMV gained nearly 5%, or 6p, to 129.25p on a upgrade ahead of a trading update later this week.
Analysts at Deutsche Bank think the market is underestimating the group’s turnaround plans amid increasing competition from internet downloads.
