Table of Contents
Banks were hit hard by the global market rout amid fears of a possible US recession.
Lloyds lost 1.4 percent, or 0.78 pence, to 54.56 pence, its falls exacerbated by negative comments from brokers.
Analysts at US giant Citi have downgraded their stance on Lloyds to neutral, saying it was the only bank to miss forecasts for pre-provision profits.
Analysts also believe that exposure to mis-selling compensation in auto financing will remain a problem through May.
NatWest, on the other hand, was the bank that stood out the most in the second quarter and believes its full-year revenue guidance can still be beaten. NatWest has replaced Barclays as Citi’s top domestic banking option.
Sell-off: Lloyds fell 1.3% or 0.74p to 54.6p, with its falls exacerbated by negative comments from brokers.
NatWest missed out on the accolade, losing 1 percent, or 3.2 pence, to 322.4 pence, while Barclays fell 1.4 percent, or 2.9 pence, to 206.2 pence.
Following Friday’s sharp falls, the FTSE 100 closed down another 2 per cent, or 166.48 points, at 8,008.23, while the FTSE 250 fell 2.8 per cent, or 589.61 points, to 20,236.74.
Leading the sell-off were investment firms with heavy exposure to US, Asian and technology stocks.
FTSE 100-listed Pershing Square Holdings fell 3 percent, or 106 pence, to 3,482 pence, while Scottish Mortgage Investment Trust lost 5.6 percent, or 45.2 pence, to 768 pence.
On the FTSE 250, the Schroder Oriental Income Fund fell 5.3 percent, or 14.5 pence, to 257.50 pence, and the Polar Capital Technology Trust fell 2.7 percent, or 80 pence, to 2,840 pence.
There were only a handful of winners on the FTSE 350: discount airline Wizz Air rose 0.1 per cent, or 1p, to 1,449p, after falling sharply last week.
Meanwhile, consumer products company Haleon – up 0.4 per cent, or 1.4 pence, at 369.2 pence – was sought after for its defensive appeal.
Stock Watch: UK Oil & Gas
Information box text
But public services, normally seen as defensive, failed to find any support, hit by negative comments from brokers.
Severn Trent fell 5.8 percent, or 54 pence, to 499 pence, United Utilities lost 5.3 percent, or 56 pence, to 1,003 pence, and Pennon fell 5 percent, or 31.5 pence, to 599 pence after analysts at Barclays cut their ratings.
A downgrade of a stockbroker and a global investment sell-off also weighed on life and pensions firm Prudential, which fell 1.2 percent, or 7.8 pence, to 637.6 pence.
Deutsche Bank analysts expect limited, if not negative, growth in many of Pru’s key business lines.
Fund platform Hargreaves Lansdown fell 4.4 percent, or 48.5 pence, to 1,051.5 pence as the deadline was extended for a third time for a group of private equity bidders to submit a firm £5.4 billion takeover offer.
The company will release its annual results on Friday, hours before the “act or shut up” deadline, which expires at 5 p.m.
Clarkson sank 14.7 per cent, or 640 pence, to 3,730 pence after a poorer first-half performance, with profits down 4 per cent. But as its order book is weighted towards the next six months, the shipping firm raised its interim dividend by 6.7 per cent.
The senior aerospace engineer raised its interim dividend after a 10 percent rise in first-half profit as contracts with Airbus offset production problems with the Boeing 737 Max.
However, it lost 6.5 percent, or 10.2 pence, to 147.4 pence.
DIY INVESTMENT PLATFORMS
AJ Bell
AJ Bell
Easy investment and ready-to-use portfolios
Hargreaves Lansdown
Hargreaves Lansdown
Free investment ideas and fund trading
interactive investor
interactive investor
Flat rate investing from £4.99 per month
Saxo
Saxo
Get £200 back in trading commissions
Trade 212
Trade 212
Free treatment and no commissions per account
Affiliate links: If you purchase a product This is Money may earn a commission. These offers are chosen by our editorial team as we believe they are worth highlighting. This does not affect our editorial independence.
Some links in this article may be affiliate links. If you click on them we may earn a small commission. This helps us fund This Is Money and keep it free to use. We do not write articles to promote products. We do not allow any commercial relationships to affect our editorial independence.
