Banks are being hit again on growing fears that one or more may have to follow the example of Royal Bank of Scotland and ask shareholders to stump up some cash to rebuild their balance sheets.
The worst affected is Alliance & Leicester, which has fallen nearly 10%, down 53.25p to 477.25p. However some 36.5p of the decline is accounted for by the fact the shares have gone ex-dividend. RBS, which is seeking £12bn in a rights issue, is 19.5p lower at 338.5p, HBOS is 25.75p down at 494.75p and Lloyds TSB off 18.5p at 421.25p.
The sector is also being hit by a number of negative notes on RBS, including a sell recommendation from Panmure, which also cut its price target from 280p to 195p on the basis of value destruction and falling profits.
Also going ex-dividend is British Gas owner Centrica, down 11.75p to 293.25p. Yesterday there was some excitement after billionaire entrepreneur Warren Buffett was said to be stakebuilding in the company.
Once again it is the oil and mining businesses which have rescued the market. The continuing strength in the crude price, although off its best levels this morning, has lifted Tullow Oil, Royal Dutch Shell and Cairn Energy by around 3%.
A production report from platinum specialist Lonmin has lifted its shares 111p to £33.95, while other miners benefited from positive noises from analysts at Lehman Brothers. Xstrata is currently 98p better at £40.96, with Anglo American up 79p to £35.28.
Overall the FTSE 100 is marginally ahead, up 1.2 points at 6035.9.
