An upbeat note from Goldman Sachs boosted the banking sector today and helped limit losses for London’s leading shares index.
The US broker upgraded its rating for the European banking sector and predicted the FTSE 100 Index would hit 6,200 in six months’ time, up from its previous estimate of 6,000.
But with Spain sparking more fears about the eurozone debt crisis after admitting it will miss deficit reduction targets this year, London’s blue chip shares index fell 20.1 points to 5,911.1.
Among the banks, Royal Bank of Scotland rose 0.3p to 28p, Lloyds Banking Group lifted 0.9p to 35.6p, Barclays was 5.6p higher at 256.8p and HSBC added 0.7p to £5.69.
Hedge fund manager Man Group was near the top of the risers’ board – up 3%, or 5p to 152.5p – after the recent signs of improved trading shown in yesterday’s full-year results boosted shares for a second successive session.
Other stocks on the way up included engineering firm IMI, which impressed the City with a bigger-than-expected 19% rise in full-year profits to £363.4million.
IMI, which is focused on the control and movement of fluids in critical applications, has benefited from demand in emerging markets. The shares were 21p higher at £9.91.
The Footsie’s biggest risers included International Power up 15.4p at 365.5p, Essar Energy ahead 4.4p at 113.8p and International Consolidated Airlines 4.5p better off at 167.3p.
Miner Kazakhmys was the biggest faller in the top flight. It shed 62p to £10.00 after Societe Generale removed its buy rating on the stock.
Other big Footsie fallers included Admiral off 37p at £10.59, Experian down 23p at 932.5p, and GKN 4.1p lower at 218.4p.
Elsewhere, FTSE 250-listed Rentokil Initial was 6%, or 4.5p lower at 76p after it announced further dismal trading at its City Link parcels delivery arm.
Steven McKay, of investment manager and financial planning specialist Brewin Dolphin in Aberdeen, highlighted Xcite Energy rising 2.8% to 137.375p and Parkmead Group adding 19.5% to 22.25p.
Stagecoach Group slid 1.5% to 270.7p, FirstGroup fell 1.4% to 291.5p and Premier Oil dropped 1.1% to 435.5p.