Markets rise on bailout plans
Markets continue to rise on bailout plans
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Monday, 13, Oct 2008 03:07
World markets bounced back after governments unveiled rescue plans, with the FTSE 100 closing 8.26 per cent higher.
The benchmark index made up for some of Friday's steep losses, closing 324.84 points higher to 4,256.90.
The sharp rise was its second best performance since the index was launched in 1984.
Earlier this afternoon in the US, the Dow Jones soared 349 points shortly after opening.
European shares also rose this afternoon as Germany's chancellor Angela Merkel and France's president Nicolas Sarkozy said their governments would set up schemes to recapitalise the banks.
Commodities led the risers on the FTSE 100, with Kazakhmys up 22.12 per cent and Cairn Energy up 15.97 per cent.
HBOS, which slumped after Lloyds TSB said it would be renegotiating the takeover deal, saw its shares fall by 27.5 per cent.
Lloyds TSB and Royal Bank of Scotland, also accepting the funds, saw their shares fall by 14.5 per cent and 8.4 per cent respectively.
Barclays, which confirmed this morning it would raise the money through issuing new shares rather than through the government, saw its shares rise by 6.14 per cent.