FTSE 100 slides on banking stocks
Interest rate decision sent banking shares down
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Thursday, 04, Sep 2008 05:16
The FTSE 100 fell 2.5 per cent to close at 5,362.10, weighed down by banking stocks as the Bank of England announced interest rates would be held.
The Central Bank kept the interest rate at five per cent, dashing hopes of a cut, which would make borrowing cheaper.
HBOS shares fell 6.84 per cent to 282.5p, while Barclays fell six per cent to 329.25p and Lloyds TSB was down 5.68 per cent.
Shares in miners also fell, as metal prices stayed low. Ferrexpo slipped 6.27 per cent to 198p while Eurasian Natural Resources fell 5.47 per cent to 872p.
Unilever finished higher, with shares up 6.17 per cent to £15.82 after the market responded favourably to its choice of former Nestle executive Paul Polman as its next chief executive.
Shares in insurer Friends Provident were also tracking higher at 1.11 per cent to 130p on takeover talk.