FTSE up in morning trading
Royal Bank of Scotland shares today recovered some ground lost after the previous session’s mammoth falls, but concerns continued to drag other banking stocks lower.
Newly created Lloyds Banking Group was deep in the red – off 30% – and Barclays fell 7% in a further sign of doubts over the Government’s second bank bail out unveiled yesterday.
The wider London market held firm in positive territory today, with the FTSE 100 Index up 12.6 points at 4121.1 by mid-morning trading.
Inflation figures showing that the Consumer Prices Index plunged to 3.1% last month from 4.1% in November failed to provide direction, despite the fall coming in far less than many had expected.
Battered stock RBS was 13% higher, or 1.5p at 13.1p, after collapsing 67% on Monday.
HSBC fell 3p to 498p having suffered steep falls in Hong Kong overnight amid growing fears that it will have to raise further cash to offset potential losses.
The falls extend losses across the sector yesterday in light of news that RBS expects to report record annual losses, but also comes in the wake of the expiry last Friday of the short-selling ban.
Elsewhere, the biggest rise outside of the top flight came from JD Wetherspoon after the pubs chain impressed shareholders with a 6.5% rise in like-for-like sales over last two weeks of trading. Shares were up 14% or 37.75p higher at 312p, even though Wetherspoon said it may not pay a dividend this year.
The update gave a boost to other pub shares, with debt-laden firm Punch Taverns ahead 1.75p at 34.25p and Mitchells and Butlers up 7.5p at 167.25p.
Burberry shares were up 20.75p at 2226.5p after its third quarter trading update exceeded market expectations.
And Comet owner Kesa Electricals rose 2.5p to 89.25p in the wake of an update showing a strong post-Christmas sales performance in the UK. Currys owner DSG International followed suit with a rise of half a penny to 20.75p.
