Yesterday's trading: Barclays hit by Lloyds cash call
Sellers were all over Barclays like a rash and the close was 12.65p lower at 360.05p.
Geoff Foster: Rounding up the news from yesterday's stock market
Fund managers happily jumped ship in order to raise cash for the expected fundraising from Lloyds Banking Group, 1.89p off at 89.6p.
They know that Lloyds has lined up six investment banks to help mastermind a mammoth rights issue of up to £15bn so that it can reduce its reliance on the government's Asset Protection Scheme. Confirmation is expected soon.
Exerting further downward pressure on Barclays was persistent industry gossip that Bob Diamond, president of its successful Barclays Capital investment banking division, could be about to jump ship in order to head up Bank of America Merrill Lynch in New York.
Diamond is American and recently put his luxury pad in Kensington up for sale at around £25m.
He already spends more time in Manhattan than London and a move to Bank of America/Merrill would probably suit him down to the ground.
One thing's for sure, should Diamond defect, Barclays would find it extremely difficult to replace him.
Profit-taking after Monday's 12-month high left the Footsie 56.02 points off at 5,154.15. Wall Street traded 57p lower at the outset after Johnson & Johnson's better-than-expected third-quarter figures were tempered by news of declining sales by two of its top-selling prescription drugs.
All digits are now crossed that there are earnings surprises when JP Morgan Chase today and Goldman Sachs tomorrow wheel out their quarterly figures.
Revived gossip that 24.7% shareholder Xstrata (10.5p off at 957.5p) could soon launch another takeover bid helped platinum producer Lonmin climb 31p to 1,640p.
Last October Xstrata withdrew a £33-a-share offer due to market conditions. It is now free to bid again should it wish to.
Canaccord is a seller of Lonmin. It reckons the group will struggle to be profitable in this environment and the platinum price could remain at levels which are unprofitable for the producers through 2010. Its target price is 1050p.
Defence group Smiths rose 20p to 945p on reports of a pending upbeat circular.
Despite a positive UBS note, Meggitt eased 3.3p to 251.6p. The broker raised its target price to 325p ahead of the trading statement on October 30.
It believes the group can deliver high-single digit organic earnings per share growth.
Credit Suisse upgraded Tate & Lyle to outperform from neutral and the shares advanced 23.7p to 473.8p.
The broker says starch volumes are recovering, US.exports of high fructose corn syrup to Mexico are growing, corn prices are low and ethanol prices have started to edge higher.
Hopes for a recovery in advertising helped Daily Mirror publisher Trinity Mirror put on 6.6p to 179p.
Supported up to 38.75p, Antisoma encountered profit-taking and closed flat at 37.25p.
Its Phase IIb drug for the treatment of acute myeloid leukaemia has been awarded orphan drug status in the US and EU, which is meant to encourage companies to come up with medications for rare diseases.
KBC Peel Hunt says the AS1411 drug already has orphan status for renal cancer, where it expects Phase II data later this year. This news underlines the value of its pipeline. Its target price is 70p.
Alternative stock exchange PLUS Markets saw trading activity soar 270pc in the third quarter over the same period last year. Almost 10bn shares were traded during September, boosted by it being able to trade in all AIM stocks since August 21.
Rival London Stock Exchange cheapened 1.5p to 885p as dealers awaited further news of acquisition talks with Turquoise.
Media Corporation edged up 0.4p to 1.45p following its acquisition of Purple Lounge, an internet gaming company.
Bango, the mobile web payments company, rose 2p to 45.5p after licensing its Bango Analytics product to Turner Broadcasting System Inc, a Time Warner Company, with American headquarters in Atlanta.
Ultima Networks, the green technology company, firmed 0.25p to 2.5p. Its Electric Bicycle division has entered into an agreement with cash and carry wholesaler Makro UK to supply it with Ultima's electric cycles.
Nostra Terra Oil & Gas improved 0.185p to 0.55p after announcing a hydrocarbon discovery on Boxberger property in Kansas, US.
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