HBOS, other rescued UK banks see declines

| October 14, 2008
HBOS, other rescued UK banks see declines

Major equities markets were higher in Europe Tuesday, but exchanges in Belgium, the Netherlands and Iceland were lower on the session.

The FTSE 100 added 3.23 percent to 4,394.21 and the FTSE 250 gained 0.91 percent to 7,094.45 in London.

In the banking sector, banks receiving bailout funds from the UK government were lower with Royal Bank of Scotland (LSE: RBS; NYSE: PRM) fell 1.07 percent, HBOS (LSE: HBOS) was 5.22 percent lower and Lloyds TSB (LSE: LLOY) dropped 6.6 percent, but other banks saw gains, including a jump of 14.29 percent for Barclays Bank (LSE: BARC; NYSE: BCS; TYO: 8642).

The Eurofirst 300 was up 3.06 percent to 966.12 as the CAC-40 added 2.75 percent to 3,628.52 and the Dax and the IBEX each gained 2.7 percent, to 5,199.19 and 10,224.5 respectively.

On the other hand, Iceland’s OMX Iceland 15 was down 77.42 percent and the OMX Iceland All-Share dropped 66.83 percent as trade resumed after a three-day halt last week as the banking system collapsed and the government took over several banks, while the BEL20 in Belgium and the AEX in the Netherlands dropped 4.77 percent and 0.27 percent respectively on a 78 percent decline for financial services group Fortis (EuronextAMS: FOR A; EuronextBRU: FORB; LuxSE: FOR) after its shares resumed trading after a recent bailout.

Most Asia/Pacific region equities markets saw gain on the session, with the main exception being the Shanghai Composite, which dropped 2.71 percent to 2,017.32.

In Tokyo, the Nikkei 225 and the Topix index both had their best one-day performances in history after a holiday closure on Monday, with the Nikkei adding 14.15 percent to 9,447.57 and the Topix gaining 13.73 percent to 956.3, while the Mothers market of small and mid-caps was 12.64 percent higher, to 303.45.

Elsewhere in the region, India’s Sensex was up 1.54 percent to 11,483.4 while the Straits Times Index added 2.5 percent to 2,128.31 and the Hang Seng jumped 3.19 percent to 16,832.88.

In Australia the S&P/ASX200 was 3.7 percent higher to 4,335.2 while the Sydney Ordinaries gained 4.09 percent to 4,311.5.

Taiwan’s Taiex was 5.4 percent higher to 5,291.56 while South Korea’s Kospi gained 6.14 percent to 1,367.69.

Wall Street saw declines in afternoon trade after an early rally as investors worried that profits could be cut by a slowdown in the global economy.

In mid-afternoon trade the Dow Jones Industrial Average had dropped 1.89 percent to 9,209.76 while the Nasdaq Composite had fallen 3.33 percent to 1,782.9 and the S&P 500 was 1.46 percent lower to 988.72.

Crude oil and grains prices were lower while metals prices were mixed.

The yen weakened while the euro and the pound both gained on the US dollar.

Tags: , , , , ,


Comments (0)

Trackback URL | Comments RSS Feed

There are no comments yet. Why not be the first to speak your mind.

Comments are closed.