Banking shares were in sharp focus today after policymakers ordered them to hold an extra £25billion to act as a cushion against future financial shocks.
The capital shortfall was lower than expected in the City, but there were mixed fortunes for state-owned lenders Royal Bank of Scotland and Lloyds Banking Group following the report from the Bank of England’s Financial Policy Committee (FPC).
The wider FTSE 100 Index narrowed earlier losses, but remained in the red with a fall of 11.8 points to 6,387.6.
The Bank of England’s capital call saw Lloyds gain 2% or 1.1p at 48.7p, while Barclays lifted 0.7p to 287.9p. RBS suffered after the report however, down 3% or 8.9p to 277.1p.
Insurer Prudential added to the drag on the FTSE 100, after being hit with a £30million fine for keeping regulators in the dark over plans for a business-changing Asian takeover. Pru dropped 4%, falling 47p to £10.51.
Holiday giant TUI Travel was the biggest riser on the FTSE 100 as its trading update was well received by the market, with shares up 4% or 12.4p at 322.8p.
Vodafone was a big faller, losing some of the premium achieved recently on the back of speculation over a potential £88billion sale of its 45% stake in Verizon Wireless in the US. Shares were down 1.8p to 186p.
The biggest FTSE 100 risers included Weir Group ahead 61p to £22.48 and Randgold Resources up 105p at £56.70.
Among the biggest FTSE 100 fallers were International Consolidated Airlines 5.8p lower at 250.1p and Aviva down 6.2p to 297.5p.
Steven McKay, of investment manager and financial planning specialist Brewin Dolphin in Aberdeen, noted FirstGroup rose 1.06% to 199.65p and Premier Oil posted a modest rise of 0.23% to finish the day at 394p.
On the fallers board, Faroe Petroleum fell 4.35% to 145.125p and Parkmead slipped 1.89% to close at 13.5p.