Barclays' shares take fresh pummelling

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The Independent Online

Shares in banking giant Barclays took a fresh pummelling today as investors continued to fret over the outlook for the beleaguered industry.

Barclays bore the brunt of the sector's latest slump, falling 20 per cent to 57.2p during a volatile start to trading.

Lloyds Banking Group, which dived as much as 47 per cent in a brutal session yesterday, fell 20 per cent before staging a recovery.

The FTSE 100 Index limited losses to 30 points despite a 4 per cent drop for the Dow Jones Industrial Average as investors in the United States got their first chance to react to the deepening crisis in the banking sector.

The Dow is now below 8,000, while the FTSE 100 Index is close to dipping below the 4,000 barrier.

Investors have continued to flee the financial sector amid doubts over the Government's second bank bailout and because of fears that more UK institutions will need to be nationalised.

Royal Bank of Scotland, which is due to be 70 per cent owned by the Government, bucked today's downward trend with a rise of 6 per cent. Shares fell 67 per cent on Monday.