UK Banks Lead Decliners, RBS Drops 4.5%

Mayank Mehta
30 Nov, 2009
New York City

UK banks led the decliners in trading on Dubai worries. The banks in UK have lent at least 80% loans to Dubai World, controlled by Dubai government. Royal Bank of Scotland, Lloyds Banking and Standard Chartered Bank fell more than 2.5%.

[R]4:00 PM London, 11:00 AM New York – UK banks led the decliners in trading on Dubai worries. The banks in UK have lent at least 80% loans to Dubai World, controlled by Dubai government. Royal Bank of Scotland, Lloyds Banking and Standard Chartered Bank fell more than 2.5%.[/R]

Aberdeen Asset Management announces final dividend. Goldshield Group first-half profit surges. Thomas Cook Group profits beat expectations. Cairn takes full control ox exploration subsidiary. BAE Systems agrees Indian JV with Mahindra.[/R]

UK stocks closed lower on the worries that the nation’s banks are expected to take largest hit from the ongoing financial crisis. For now, Dubai World has asked a freeze on the payment to $60 billion debt for six months and Dubai government sent its first signal that it is not interested in bailing out the construction holding company.

Banks around the world have on the decline and UK banks fell. Royal Bank of Scotland and Standard Chartered Bank led the decliners in trading.

Royal Bank of Scotland decreased 4.5% to 33.18 pence and Lloyds Banking Group Plc declined 5.9% to 55.15 pence.

HSBC edged slightly higher but Standard Chartered Bank declined 2.4% to 1,484 pence.

In London FTSE 100 Index closed lower 55.05 or 1.1% to 5,190.68 and the pound edged lower to close at $1.645 and edged lower to close at €1.095.

Gainers & Losers

Aberdeen Asset Management Plc added 0.1% to 139.20 pence an independent asset management company said full-year revenues fell 2% to £421.9 million from £430.1 million a year ago. Net loss for the full-year was £8.07 million or 1.71 pence per diluted share compared to net profit of £35.2 million or 4.52 pence per share a year ago.

BAE Systems plc fell 0.06% to 330.80 pence has today entered into a joint venture agreement with India based Mahindra & Mahindra Limited to create a land system.

Cairn Energy PLC climbed 0.6% to 3,060 pence after the oil and gas firm said that it has entered into binding agreement with Dyas BV to acquire the 10% interest in the company’s exploration focused subsidiary, Capricorn.

Goldshield Group plc advanced 0.3% to 484.00 pence after the pharmaceutical and consumer health products maker said first-half revenues rose 7.4% to £53.9 million from £50.2 million a year ago. Net profit for the first-half rose 59% to £8.97 million or 25.7 pence per diluted share compared to net profit of £5.63 million or 16.0 pence per share a year ago.

HSBC Infrastructure Company, the investment trust fell 0.4% to 112.00 pence.

Lamprell plc fell 0.7% to 178.60 pence after the provider of specialist engineering services to oil and gas firms declined on the weakness in energy prices.

Mitchells & Butlers plc the pub operator fell 0.4% to 251.90 pence.

The Scottish Investment Trust PLC fell 0.9% to 419.80 pence.

St Ives plc the printed products and solutions provider to the publishing plunged 8.8% to 62.00 pence.

Thomas Cook Group plc decreased 0.1% to 215.90 pence after the tour operator said full-year revenues rose 6% to £9.3 billion from £8.8 billion a year ago. Net profit for the full-year rose 46% to £15.8 million or 1.8 pence per diluted share compared to net profit of £10.8 million or 4.6 pence per share a year ago.

FTSE 100 Index Movers

Of the stocks in the FTSE 100 index, 15 increased, 86 declined and 1 were unchanged.

Lloyds Banking Group Plc decliners in the FTSE 100 index with a loss of 5.89% followed by losses in Legal & General Group Plc of 4.45%, in The Royal Bank of Scotland Group Plc of 4.45%, in Segro Plc of 3.53%, in Liberty International Plc of 3.42%.

Eurasian Natural Resources Corporation Plc led gainers in the FTSE 100 index with a rise of 1.89% followed by increase in Cairn Energy Plc of 1.32%, in Severn Trent Plc of 0.96%, in Tui Travel Plc of 0.90%, in British Airways Plc of 0.77%.