Shares in the banking and insurance sector dragged down the FTSE by 1.1% to 6,839 as the market grew increasingly concerned about the health of Deutsche Bank and the potential implications to the European banking industry if it went bust.
Lloyds (LLOY) and Barclays (BARC) both fell around 3% while insurers Aviva (AV.) and Prudential (PRU) also took a similar hit.
West Texas Intermediate (WTI) crude oil declined 1.2% to $47.25 while Brent crude oil slumped 1.7% to $48.38 per barrel, respectively.
Gold glittered at $1,325 per ounce and copper was flat at $4,806 per tonne.
MAIN NEWS OF THE DAY
Royal Bank of Scotland (RBS) unveiled proposals to regroup its businesses and separate its essential banking services from investment banking to comply with UK ring-fencing legislation.
Capita (CPI) continued yesterday’s profit warning-induced downwards trend with another 4.6% drop in its share price to 665.7p.
MID CAP RISERS AND FALLERS
TV show maker Entertainment One (ETO) rose 1.7% after the value of its library of content was hiked after an independent assessment. It reported a 50% increase to $1.5bn news alongside word that its full-year performance would be in line with management expectations.
Defence technology company QinetiQ (QQ.) eased back 1.6% despite securing a £109m, 11-year contract extension with the UK Ministry of Defence, which will cover Royal Navy mission systems and infrastructure through work at the Portsdown Technology Park in Portsmouth.
Spread betting firm IG Group (IGG) agreed to buy global news and research portal DailyFX and its associated assets from FXCM in a $40m deal.
Landlord Grainger (GRI) nudged lower to 228.1p after agreeing to forward purchase a build-to-rent development in Leeds city centre for £40m, which will deliver 250 private rented sector homes.
SMALL CAP RISERS AND FALLERS
Speedy Hire (SDY) accelerated 5.9% to 35.75p on a positive trading update, which revealed that pre-tax profit would be ahead of the first half of the year due to job cuts.
Investors jumped ship following public safety wireless specialist Vislink’s (VLK) warning it expected to breach its banking covenants. Directors said the firm’s survival could not be taken for granted. Shares in the firm crashed 45.3% to 8.75p.
Lemin Resources (KEM) fell 7.7% following the suspension of further exploration work in Kazakhstan until both licences and exploration programmes have been agreed.
Asset manager Charlemagne Capital (CCAP) said it agreed to a takeover by Fiera Capital, causing the company to trade 12.5% higher at 13.5p.
Investors were disappointed with Lead All Investments’ (LEAL) decision to consider investing in the wine sector, triggering a drop of 18.2%.
Rurelec (RUR) traded 11.1% higher after swinging from a loss of $14.1m to $2 post-tax profit in the year to 30 June.
African agribusiness Zambeef Products’ (ZAM) recovery continued as shares fattened up 10.6% to 16.8p as profits for the year to September would be ‘materially higher’ than expected.
Ingredient solutions provider Treatt (TET) sweetened 10.8% following an upbeat trading statement that revealed pre-tax profit for the year to 30 September would beat expectations.
Sigma Capital (SGM) said delays in self-funded PRS activities meant management expectations would have to be materially rebased for the near term. Its shares crashed 13.8% to 72p.
Drone specialist Aero Strat (AERO) disappointed the market as revenues from inspection, survey and consultancy services remained below expectations due to slower adoption of UAV solutions by larger customers.
Engineering and technology provider China New Energy (CNEL) sparked 26.7% to 1.9p on a 70% hike in half year revenue and increased gross profit.
Biotech Life Science Developments (LIFE) climbed 23.5% to 2.63p on well-received half year results.
Independent Oil & Gas (IOG) plummeted 41.8% to 16p as its loss after tax widened and the firm secured additional loans to finance asset acquisitions.
Alecto Minerals (ALO) raised £600,000 through a shares placing to help fund its pre-development activities on the ground in Zambia.
Story provided by StockMarketWire.com