FTSE: 5,843.66 (–3.29) Mid-250: 11,746.78 (–19.78) Small Cap: 3,275.09 (+7.51):The FTSE 100 index pulled back yesterday as nervous traders awaited results of bank stress tests published after the market closed.
The London market dropped 3.3 points to 5843.6 as investors speculated on the outcome of the European Banking Authority tests. The EBA ultimately revealed eight out of 90 banks failed.
Traders will have the weekend to digest the results before the market opens on Monday.
Investors sentiment was also weighed down after credit rating agency Standard Poor’s said there was a 50 per cent chance it would downgrade the US government’s debt, following a similar announcement by Moody’s.
The banking sector dragged on the market with Lloyds Banking Group shedding 1.1p at 44.7p and Royal Bank of Scotland dropping 0.3p at 35p.
The mood was also impacted by a second-quarter loss from mobile phone-maker Sony Ericsson, which has been hit by the impact of the Japanese earthquake and tsunami. This helped depress technology shares in London, with chip designer Arm Holdings off 10.5p at 564p and Inmarsat sinking to the bottom of the Footsie, down 18p at 535p.
The world’s biggest miner, BHP Billiton, was among the biggest fallers after investors were unimpressed by its $15 billion deal to buy shale gas specialist Petrohawk. Shares fell 46p to 2340p.
BSkyB was among the biggest risers after Deutsche Bank raised its target price to 850p and said the stock represented a buying opportunity following NewsCorp’s failed bid for the company. Shares were 13.5p higher at 709.5p.
Transport operator FirstGroup’s first-quarter trading update impressed investors after it revealed that its rail services saw like-for-like passenger revenues increase by 8.5 per cent in the three months to June 30th. It lifted 20.8p to 350.6p, making it among the top risers in the FTSE 250 index.
Outdoor retailer Blacks Leisure saw its shares slide 20 per cent after it turned to its bank for extra support following a surge in debt.
The biggest Footsie risers were Burberry up 63p at 1577p, Tullow Oil ahead 25p at 1294p, BSkyB and Petrofac ahead 28p at 1473p.
The biggest Footsie fallers were Inmarsat down 18p at 535p, Rolls-Royce off 16.5p at 642.5p, Lloyds Banking Group down 1.1p at 44.7p and Vedanta Resources off 37p at 1844p. – (PA)
