Barclays shares up as Bob Diamond quits
Tuesday 03 July 2012
Barclays shares were nearly 2% higher as investors appeared to back Bob Diamond's decision to step down as the bank's chief executive.
After a volatile start in early trading, the blue-chip stock, which was hammered last week after Barclays was fined £290 million for rigging a key interbank lending rate, settled around 3.6p higher at 172.1p.
However, the shares are still below the 196p at which they opened last Thursday before the bank saw around £3 billion wiped from its market value as Libor-fixing affair escalated.
Mike McCudden, head of derivatives at Interactive Investor, said: "This story is likely to run for some time yet however, but despite the void Mr Diamond's departure leaves at one of the UK's largest banks, investors seem to be thinking - or at least hoping - that this may draw a line under the issue."
Other analysts said traders could be bargain-hunting, buying up Barclays shares after they lost so much value in the past week.
Other banking stocks were mixed as analysts warned the Libor and wider banking culture issue would broaden to cover all banks in the coming days.
Taxpayer-backed Royal Bank of Scotland, which is being investigated by the FSA, lost 1%, but Lloyds Banking Group was slightly ahead.
Ian Gordon, analyst at Investec, who yesterday backed Mr Diamond, said the timing of his departure was a surprise.
But he added: "We expect Barclays' sharp share price under-performance to reverse as the market takes a more dispassionate look at the facts."
- 1 Stamford Hill council removes 'unacceptable' posters telling women which side of the road to walk down
- 2 Kim Kardashian 'nude pictures' leaked on 4chan weeks after Jennifer Lawrence 'The Fappening' scandal
- 3 Scottish referendum 'English question': Tory MPs call on David Cameron to create an English first minister in wake of No vote
- 4 Iranian blogger found guilty of insulting Prophet Mohammad on Facebook sentenced to death
- 5 Free U2 album: How the most generous giveaway in music history turned into a PR disaster
Stamford Hill council removes 'unacceptable' posters telling women which side of the road to walk down
Kim Kardashian 'nude pictures' leaked on 4chan weeks after Jennifer Lawrence 'The Fappening' scandal
Iranian blogger found guilty of insulting Prophet Mohammad on Facebook sentenced to death
Hitler’s former food taster reveals the horrors of the Wolf’s Lair
Jennifer Lawrence 'naked sex video' will be leaked next, threatens 4Chan celebrity photo hacker
Scottish independence referendum: A nation divided against itself
Scottish referendum results: Cross-party consensus collapses amid Tory-Labour spat on the 'English question'
Scottish independence: David Cameron is becoming the 'George Bush of Britain'
Russia freezes Ukraine into submission: Kiev admits country doesn't have enough fuel for winter
Archbishop of Canterbury admits doubts about existence of God
Plebgate MP Andrew Mitchell called officer a 'little s**t', claim court documents 'exposing ex-Chief Whip's 'record of abusing police'
iJobs Money & Business
£400 - £450 Per Day: Clearwater People Solutions Ltd: **URGENT CONTRACT ROLE**...
Up to £100k or £450p/d: Saxton Leigh: My client is a leading commodities tradi...
£320 - £330 per day: Ashdown Group: The Ashdown Group have been engaged by a l...
To £75,000 + Pension + Benefits + Bonus: Saxton Leigh: My client is looking f...