Barclays shares surge on resignation of chairman
Monday 02 July 2012
Barclays shares surged more than 5% to the top of London's leading shares index as investors appeared to back Marcus Agius's decision to resign as chairman.
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 8.1p higher at 170.8p.
The bank saw around £3 billion wiped from its market value last Wednesday after the FSA published its report into the Libor-fixing affair, fuelling fears over the cost of the scandal.
Neil Shah, global head of research at Edison Investment Research, said Barclays' “bloodletting” with the resignation of the chairman sends out “all the right messages”.
He said: “It is vital that the next chairman is someone who is an expert in financial services but ideally not a banker him or herself in order to provide some extra perspective for the executive board.”
Other banking stocks were ahead after fluctuating throughout the morning with Royal Bank of Scotland up 0.4%, HSBC ahead 2% and Lloyds Banking Group up 2%.
Ian Gordon, analyst at brokers Investec, urged investors to back Barclays chief executive Bob Diamond and take “full advantage” of Barclays' recent share price under-performance.
He said “Bob is going nowhere” and added that it was still unclear whether Barclays “successfully” manipulated the Libor.
He said the investment arm, Barclays Capital, needs “radical action” to pull down its “bloated” cost base and the Libor revelations may ironically exert pressure on pay excess.
He added that the “unquantifiable” litigation risks are being seen as a multi-bank issue rather than Barclays-specific, which should help Barclays stock.
- 1 Drugs Live cannabis trial: Hash is less harmful than any other drug, expert claims
- 2 Have sex with your iPad thanks to the new sex toy no-one asked for
- 3 The 'sex selfie stick' lets you FaceTime the inside of a vagina
- 4 Adam Levine's biggest fan had a panic attack upon meeting him, so the singer laid down on the floor to get a photo with him
- 5 Why you're almost certainly more like your father than your mother
Out-of-touch MPs ‘don’t get it’, says ex-Civil Service chief
Mark Zuckerberg: Facebook CEO's one simple test for who to hire
Bali nine: Welcome to 'Execution Island' – the Indonesian holiday resort where foreigners are sent to die
'A girl is more responsible for rape than a boy': The statement that shocked the world... except India
The 'sex selfie stick' lets you FaceTime the inside of a vagina
Durham Free School: 'Creationism taught at' free school facing closure
Nearly 100,000 of Britain's poorest children go hungry after parents' benefits are cut
Ukip would cut billions from Scottish budget to fund English tax cuts
End of the licence fee: BBC to back radical overhaul of how it is funded
Ukraine crisis: Top Chinese diplomat backs Putin and says West should 'abandon zero-sum mentality'
Boris Nemtsov shot dead: Outspoken Putin critic who had expressed fears for his life is killed near the Kremlin
£45000 - £55000 per annum + benefits: Ashdown Group: Senior VMware Platform En...
£10000 - £16000 per annum: Recruitment Genius: A distributor of specialist ele...
£17000 - £19000 per annum: Recruitment Genius: A distributor of specialist ele...
£32000 per annum + pension, healthcare & 23 days holiday: Ashdown Group: A gro...