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Wednesday 30th of December 2009
November 24, 2009    

Lloyds Banking Group gains on share pricing

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by Elaine Frei
Lloyds Banking Group gains on share pricing

European equities markets were lower Tuesday after a revised report on the US gross domestic product showed that it did not grow as much as thought in the third quarter, rising only 2.8 percent rather than the earlier estimate of 3.5 percent growth.

The FTSE 100 was 0.59 percent lower in London, while the FTSE 250 fell 0.96 percent to 9,181.18 as banks and miners saw declines.

Lloyds Banking Group (LSE: LLOY) was the best performer on the 100 and the only gainer in the London banking sector as it added 2.56 percent after announcing the price if its new shares at 37p each, while Royal Bank of Scotland (LSE: RBS) turned in the worst performance on the 100 and in its sector with a decline of 3.96 percent.

The biggest loser in London came from the mining sector as Ferrexpo (LSE: FXPO) dropped 9.86 percent on the 250 as metals prices declined.

Other miners seeing declines included Aquarius Platinum (LSE: AQP), which was down 5.8 percent on the 250 while over on the 100, Vedanta Resources (LSE: VED) was 2.65 percent lower, Rio Tinto (LSE: RIO) fell 2.85 percent and Kazakhmys (LSE: KAZ) dropped 2.95 percent.

The biggest gainer in London was healthcare products manufacturer SSL International (LSE: SSL), which added 7.14 percent to lead gainers on the 250.

The FTSE Eurofirst 300 was down 0.55 percent to 1,017.87 while the IBEX fell 0.3 percent to 11,905.2, the Dax was 0.55 percent lower to 5,769.31 and the CAC-40 dropped 0.75 percent to 3,784.62.

Markets in the Asia-Pacific region were almost all lower on the session, although Taiwan’s Taiex added 0.36 percent to 7,714.56.

After a day off for a holiday yesterday, Tokyo’s markets were lower as the Nikkei fell 1.01 percent to 9,401.58, the Topix index was down 1.13 percent to 829.22 and the Mothers market dropped 1.25 percent to 379.65.

Banks were lower in Tokyo on concerns that more banks will have to follow the lead of Mitsubishi UFJ (TYO: 8306) and sell more shares in order to raise enough cash to comply with new rules on bank capitalization.

Mitsubishi UFJ was down 2.8 percent while Mizuho Financial Group (TYO: 8411) was 2.5 percent lower and Sumitomo Mitusi Financial Group (TYO: 8316) dropped 4.4 percent.

Japan Airlines (TYO: 9205) fell 8.4 percent on the news that trader Mitsui & Co (TYO: 8031) has sold its holdings in the air carrier.

Elsewhere in the region, the Sensex was 0.29 percent lower to 17,131.08 while the Straits Times Index fell 0.64 percent to 2,779.98 and in Australia the Sydney Ordinaries dropped 0.65 percent to 4,708.2 and the S&P/ASX200 was down 0.68 percent to 4,685.

South Korea’s Kospi dropped 0.78 percent to 1,606.42, the Hang Seng was down 1.53 percent to 22,423.14 in Hong Kong, and the Shanghai Composite was 3.45 percent lower to 3,223.53.

New York markets were lower in early afternoon trade with the Dow Jones Industrial Average falling 0.53 percent to 10,395.47 at just before 1 p.m. local time, while the Nasdaq Composite had dropped 0.66 percent to 2,161.7 and the S&P 500 was 0.43 percent lower to 1,101.48.

In addition to the news that the US GDP did not grow as much as thought in the third quarter, new data showing that US home prices rose less than expected in September also hurt Wall Street.

There was better news, however, in a Conference Board report which had its US consumer confidence index at 49.5 in November, better than the forecast reading of 47.7.

Prices for oil and most metals were lower at mid-morning in New York.

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