Banks led the market lower in early trading, as nervousness over the parlous state of Deutsche Bank mounts.
The FTSE 100 was off 85 points at 6,834 after 90 minutes trading, with banking titans Barclays PLC (LON:BARC), Royal Bank of Scotland Group PLC (LON:RBS) and Lloyds Banking Group PLC (LON:LLOY) all down by more than two percentage points.
Elsewhere in the financial sector asset managers and pension fund operators Old Mutual PLC (LON:OML), Standard Life PLC (LON:SL.), Aviva PLC (LON:AV.), Schroders PLC (LON:SDR) and St James’s Place PLC (LON:STJ) also suffered collateral damage from the Deutsche Bank fall-out, suffering similar losses to the big banks.
JP Morgan Cazenove responded this morning to the share price collapse by slashing its price target to 760p from 1,080p, while retaining its neutral stance.
Capita shares shed another 30p to 668p.
Risk-averse investors looked to precious metals miners Randgold Resources Ltd (LON:RRS) and Fresnillo PLC (LON:FRES) as a safe harbour; the miners were among a handful of blue-chips to make headway in early trading.
Shares rose 1.1% to 215.4p as the media rights owner said operating performance this year was on-track across all divisions.
Small cap Charlemagne Capital Limited (LON:CCAP) brought some much needed cheer to the asset management sector, rising 12.5% to 13.5p, as it agreed to a 14p a share cash offer from Fiera Capital Corporation.
Rurelec Plc (LON:RUR) powered 11.1% higher to 1.25p on the back of interim results. Despite turnover slumping to £116k from £620k the year before the power generator moved into the black with a profit before tax of £2.04mln versus a loss the year before of £14.1mln.
The Africa-focused gold and base metal exploration and development company has raised £600,000 after placing shares at 0.075p, sending the shares tumbling 27% to 0.08p.
Things are getting tense at Independent Oil and Gas PLC (LON:IOG), which is being forced to rethink its plans for the Skipper field as initial results from a pivotal appraisal well are incompatible with the group’s pre-drill view of the project.
New well results reveal the oil at Skipper to be heavy, 11° API, and significantly more viscous than previously expected.
It may now take several months for the company to determine whether or not the field can be commercially viable, IOG said, prompting market makers to lop 39% from the share price.
London’s index of blue chip shares fell 91 points to 6,827.5p, weighed down by the banks.
Deutsche Bank’s share price has dropped below the €10 mark for the first time in 30 years.
Story by ProactiveInvestors