FRIDAY MARKET CLOSE: Share falls at RBS

THE London market closed down, dragged lower by traders who were disappointed by results from Royal Bank of Scotland and British Airways owner International Airlines Group (IAG).

The London Stock Exchange building. Picture: Getty

The FTSE 100 Index was 34.71 points down at 6,361.09, following a 42-point fall in the previous session.

Tony Cross at TrustNet direct said uncertainty over how central banks will act with regard to interest rates will continue to limit the broader sentiment in equity markets. “Given the lacklustre data we’ve seen from the US over the last couple of days, it’s all too easy to think that a rate hike from the Federal Reserve before Christmas remains something of a stretch. Anything that adds weight to this idea next week can only be good for stocks on a global basis,” he said.

Shares in RBS fell 3.1p to 317.6p, as it revealed litigation costs of £129 million for the quarter, principally relating to mortgage-backed securities.

BG Group saw its third quarter revenues plummet almost two thirds as it became the latest firm to be hammered by low oil prices.

Shares fell 5p to 1,025p.

British Airways owner IAG said growing passenger numbers and lower fuel costs led to strong third quarter results.

But it was the biggest faller in the top flight, falling more than 2 per cent, or 15p, to 582.5p, with analysts citing profit-taking in an industry which is notoriously cyclical.