News

The share price of Royal Bank of Scotland plummeted to levels not seen since mid-1993, as widespread panic seized the banking sector. Fellow Scottish based bank HBOS also hit the skids, as rumours circulated of banking chiefs' frustration at delays in the announcement of the government's rescue package for the UK banking system.

Both RBS and HBOS lost around two-fifths of their share values in a single day and both now trade below £1. RBS slumped despite a terse announcement that, contrary to press speculation, it has not sought a capital injection from the government. Barclays had earlier issued a similar announcement, and its share price was also hammered, though nowhere near as much as RBS and HBOS. HBOS's merger partner, Lloyds TSB also suffered a double-digit percentage fall, but Standard Chartered and HSBC both rose on the day.

A meeting between the Prime Minister, the Chancellor of the Exchequer, the governor of the Bank of England and the chairman of the Financial Services Authority was taking place at Downing Street as the market closed, although a spokesman for the Prime Minister said the meeting had been scheduled for some time and was not called as a reaction to the current crises.

Despite the travails of the banking sector, the Footsie managed to just about finish higher today, thanks to strong gains from miners and drinks shares.

Miners were wanted as metal prices recover. Vedanta, ENRC and Lonmin were the picks of the sector while Rio Tinto, which has significant interests in Australia, was also wanted.

Kazakhmys defied the trend, however, slipping back after the company signed a memorandum of understanding with Samruk-Energy that will see the pair consider a strategic partnership and joint ownership of the Kazakhmys Power division.

In the drinks sector brewer SABMiller and Guinness and spirits brands owner Diageo both racked up healthy gains, while among second liners pub groups JD Wetherspoon and Marston did well.

British Airways was lower after it said its merger with Spanish airline Iberia will be delayed by the continued economic slowdown in Britain and the USA.

Michael Page saw third quarter profit rise 14.6% to £141.4m, but the recruitment firm warned it will axe more staff during the final quarter of the year if market conditions continue to deteriorate.

Ready meals group Northern Foods said although profits are weighted more towards the second half, at the half way stage, it remains on schedule to deliver pre-tax profits in line with expectations.

Yellow Pages publisher Yell has agreed an amendment to its bank covenants with major banks that gives it more flexibility in tough conditions.

Terrestrial TV network ITV plunged after Swiss bank UBS reiterated its sell rating and cut its 12-month price target to 25p from 28p. UBS said that after stripping out the content business, the shares are trading on "56 times 2009 earnings, more than pricing in an uncertain recovery and regulatory benefits."

Although UBS acknowledges the possibility of a bid it does not think any offer will emerge until "the share price catches up with the economic reality."

Sausage maker Cranswick's like-for-like sales rose by 10% in the half year to September with higher selling prices offsetting raw material increases.

Weak trading in the US and Asia mean that Kewill's pre-tax profits in the second half will be lower than those of the first six months of the year, the logistics software company warned.

Road and infrastructure support group Mouchel has reported a 20% hike in profit before tax and one-off items and full year underlying revenue growth at the top end of its 10-15% target.

Shares in Oxford Biomedica surged ahead after positive talks with the US Food and Drug Administration (FDA) on further trials for its renal cancer drug TroVax.

Mobile phone software specialist Psion said it will make a full provision in its 2008 accounts for claims made against it from trading partners of its Japanese arm Psion Teklogix KK (Psion Japan).

UK catering equipment maker Enodis is firmer after its takeover by The Manitowoc Company obtained US antitrust clearance.

Shares in Your Space slumped after the office space and building restoration firm reported sharply lower full-year profits.

FTSE 100 - Risers
Friends Provident (FP.) 85.00p +13.33%
Vedanta Resources (VED) 1,005.00p +11.17%
SABMiller (SAB) 1,033.00p +10.60%
Standard Life (SL.) 255.00p +9.91%
Eurasian Natural Resources (ENRC) 459.75p +8.18%
Man Group (EMG) 308.50p +7.77%
Smith & Nephew (SN.) 558.50p +6.89%
Lonmin (LMI) 1,670.00p +6.03%
Kingfisher (KGF) 140.80p +6.02%
Diageo (DGE) 882.00p +5.38%

FTSE 100 - Fallers
HBOS (HBOS) 94.00p -41.54%
Royal Bank of Scotland Group (RBS) 90.00p -39.23%
Lloyds TSB Group (LLOY) 225.50p -12.93%
British Airways (BAY) 128.20p -11.59%
Barclays (BARC) 285.00p -9.24%
Invensys (ISYS) 172.80p -6.44%
John Wood Group (WG.) 274.50p -5.59%
Petrofac Ltd (PFC) 480.50p -4.85%
Wolseley (WOS) 366.50p -3.74%
Carnival (CCL) 1,468.00p -3.74%