FTSE makes difficult start to the week
The FTSE 100 Index endured a difficult start to the week today as losses for banks sent the London market more than 1% lower.
Investor gloom following heavy pre-weekend losses on Wall Street and overnight falls in Asian markets saw the Footsie fall 74.1 points to 5810.2 by mid morning.
Banking shares accounted for four of the Footsie’s top six fallers despite a 10% rise in annual profits for HSBC.
The UK’s biggest bank was one of a handful of blue-chips in positive territory - up 7p to 773p – after the profits boost amid relief that the figure was in line with forecasts despite a 63% jump in bad debt charges.
The rest of the banking sector was under pressure amid economic worries in the United States, with fears over the housing market and faltering economic confidence.
Halifax Bank of Scotland was the leading faller – down 33.5p to 570p with Royal Bank of Scotland off 15.75p to 369.25p.
Barclays was down 17p to 460.25p despite its move into the fast-growing Russian retail banking market with a £373m (€487m) deal for Expobank, while Alliance & Leicester slipped 23.5p to 540p.
Strong annual results from FT publisher Pearson failed to boost the company’s share price, which fell almost 3% or 18p to 648p as traders overlooked chief executive Marjorie Scardino’s forecast for “another good year” in 2008.
Among the few firms in positive territory, food and catering giant Compass was the leading Footsie riser after being upgraded by brokers at Credit Suisse on hopes of better than expected US margins. This lifted Compass 3.75p to 330.25p.
Elsewhere, computer games firm Game jumped almost 4% in the FTSE 250 Index after it said trading in recent weeks had been better than expected. Shares rose 6.5p to 192.75p.
