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 'Fire at every person you see': Israeli soldiers reveal they were ordered to shoot to kill in Gaza – even if the targets may have been civilians
- 2 Italian police 'reveal' what Jesus looked like as a young boy
- 3 General Election 2015: 14-year-old boy asks Nick Clegg – 'can you kill Katie Hopkins?'
- 4 Garland shooting: Isis claims attack on Prophet Mohamed cartoon contest in Texas as its first action on US soil
- 5 Met Gala 2015: Beyoncé manages to out-skimp Rihanna, Miley and Kim Kardashian combined with near-naked ensemble
Italian police 'reveal' what Jesus looked like as a young boy
Who should I vote for? The Independent quiz matches best political party for undecided voters ahead of the general election
Met Gala 2015: Beyoncé manages to out-skimp Rihanna, Miley and Kim Kardashian combined with near-naked ensemble
Syria's 'circle of hell': Aleppo residents describe children without heads, streets filled with blood and injuries never before witnessed by surgeons
General Election 2015: Photographic history of Bullingdon Club tracked down - including new picture of David Cameron in his finery
In defence of liberal democracy
Over 50,000 families shipped out of London boroughs in the past three years due to welfare cuts and soaring rents
EU asylum policy is 'a direct threat to our civilisation', says Nigel Farage
The Rothschild Libel: Why has it taken 200 years for an anti-Semitic slur that emerged from the Battle of Waterloo to be dismissed?
General Election 2015: UK will be 'run for the wealthy and powerful' if Tories retain power, Labour warns
General election live: Clegg warns of second election before Christmas without Lib Dems
iJobs Money & Business
£20000 - £25000 per annum + Uncapped commission: SThree: Can you speak German,...
£25000 - £30000 per annum + benefits: Ashdown Group: An exciting opportunity f...
£215 per day: Ashdown Group: Junior Project Manager (website, web application ...
£40-50K: Guru Careers: We are seeking an experienced Software Engineer / Softw...