FTSE slides to fresh three-year low
Jakarta, Financeroll.com – Merger talks between banking giants HBOS and Lloyds TSB failed to prevent a late slide on the London market on Wednesday after heavy falls on Wall Street dragged stocks lower.
News of a possible tie-up between the two top five banks had provided a boost earlier in the day, but the FTSE 100 Index closed deep in the red for the third straight session. The Footsie shed 2.3%, down 113.2 points at 4912.4 - its lowest close since May 2005.
In America, the Dow Jones Industrial Average plummeted by nearly 3% in early trade, despite the 85 billion US dollar (£47.2bn) US Government bail-out of insurance giant AIG. Gloomy economic news in the States added to the stock misery.
Halifax Bank of Scotland suffered a further 19% plunge in its share price. The UK’s biggest mortgage lender closed down 34.9p at 147.1p, having been more than 20% up at one stage in another dramatic day’s trading. Lloyds TSB also lost double digit gains to close unchanged at 279.75p. But Barclays, which confirmed that it was buying some Lehman Brothers assets including its North American investment banking business, held firm in positive territory, rising 3%, or 9.75p to 317.75p.
Elsewhere in the sector Royal Bank of Scotland shed 10%, or 19.7p to 169.4p. In the FTSE 250, Bradford & Bingley fell 1p to 29p after hitting record lows earlier in the session. Some insurers were on steadier ground. Legal & General moved 1.4p higher to 89.9p and Admiral rose 2p to 859.5p. However, Norwich Union was closing down 4.5p at 455.5p.
Miners meanwhile offered some support to the top flight with Ferrexpo leading advances, up 6.9p to 168.2p. Lonmin - also on the risers board - gained 91p to 2633p. Supermarkets too were rare gainers,Morrisons was up 10p at 256.5p and Sainsbury’s ahead 7.75p at 361.75. But confidence in the retail sector was not helped by details of a near £100 million half-year loss at high street chain Woolworths. Shares in the group were 0.06p lower at 6p. (PA/MDY)
