WEDNESDAY MARKET CLOSE : Banking shares dip over forex fines

HSBC down 1.9p at 635.6p. Picture: PA
HSBC down 1.9p at 635.6p. Picture: PA
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BANKING shares came under pressure today after confirmation of punishment from global regulators for rigging foreign exchange markets.

But the damage was limited as the fines removed some of the uncertainty hanging over the sector.

RBS drifted to finish 3.6p cheaper at 374.1p, with HSBC down 1.9p at 635.6p after it was one of four other banks to agree a settlement with authorities in the UK and the US. Shares in Barclays were 5.1p lower at 229.5p as it remained in talks with regulators.

The wider FTSE 100 Index surrendered some of its recent gains to close 16.36 points lower at 6,611.04.

Support services firm Capita was the biggest faller in the FTSE 100 as it revealed that its bid pipeline of potential future business fell to £4.1 billion from £5.7bn in July. Shares fell 73p to 1,048p.

The pound was also under pressure against the US dollar and euro – at 1.58 and 1.27 respectively – after the Bank of England’s quarterly inflation report appeared to cement the likelihood that interest rates will remain at 0.5 per cent until well into 2015.

Outsourcing firm G4S posted one of the biggest gains in the top flight after it reported a rise in organic revenues growth for the nine months to 30 September. Shares rose 2 per cent, or 5.5p to 270p.

British luxury fashion house Burberry dipped 23p to 1,505p as it reported an 11 per cent fall in half-year pre-tax profits to £141m, due to a strong pound and a “more difficult external environment”.

Outside the top flight, shares in regional airline Flybe slumped 15 per cent or 20.25p to 111.5p after it revealed one-off charges in its half-year results worth £34.m, including following the sale of its joint venture in Finland for a token sum of one euro.