FTSE 100 slumps to three-year low
Wednesday, 17 Sep 2008 19:54
FTSE 100 closes at three-year low
The FTSE 100 ended the day at a three-year low of 4,912.40 on a volatile day of trading.
The main story of the day was HBOS, which saw its shares plummet to a 52-week low of 88p before bouncing back on rumours of a merger with Lloyds TSB.
By mid-afternoon, both banks had confirmed they were in "advanced" talks and shares in HBOS finally closed at 147.10p, a 19.8 per cent fall from its opening price of 200p.
Mining stocks were also down again, with Kazakhmys falling by 10.76 per cent and Anglo American down 9.26 per cent by the end of the day.
However, a plan to slash prices announced by major supermarkets Tesco and Asda sparked interest in grocers and Morrisons climbed 13.5 per cent to 113.5p, a 52-week high for the retailer.
Tesco stocks also rose, by 3.96 per cent and Sainsbury shares were up 2.19 per cent.
Ryan Kneale, market analyst at City bookmaker BetsForTraders.com, said: "It's all about the clean up now. We are seeing plenty of talk regarding rescue deals, mergers and potential buyouts, as well as central banks pumping money into frozen financial systems.
"Whether we are in the eye of the storm or at the end remains to be seen, as many banks are remaining very tight lipped."