FTSE close: Lloyds, BA up; Xstrata down
The FTSE 100 index failed to capitalise on a bright start today as weaker mining stocks offset sharp gains in the banking sector.
Banking shares rose by as much as 4% after Bank of America's surprise announcement that it will repay its £27bn US government bailout.
The move, relating to loans made in last year's credit crisis, gave a boost to confidence in the sector as Barclays rose 7p to 304.5p, Lloyds Banking Group added 2.35p to 55.45p and Standard Chartered lifted 19p to 1570p.
The FTSE 100 index closed 14.4 points down at 5,313, although this represented an easing on the 45-point gain seen earlier in the session.
Investor spirits were initially boosted by Japan's Nikkei index, which closed almost 4% higher. Shares in major Japanese exporters surged after the yen fell against the dollar amid speculation the government might take additional steps to keep the currency from strengthening too much.
A report from the US Federal Reserve saying regional economic activity has generally improved since October also helped market sentiment.
But miners gave back recent gains as Xstrata slipped 44p to 1104p, Antofagasta fell 15p to 921.5p and Lonmin retreated 54p to 1857p.
As well as the banks, British Airways climbed 3.8p to 206.2p ahead of passenger figures for November due later in the session.
Among other top flight stocks, home improvement retailer Kingfisher saw gains after it revealed like-for-like sales were up 5.7% in the 13 weeks to October 31, driven by higher sales of 'big ticket' items and improved DIY performance. Shares were 1.9p higher at 237.9p, although Homebase rival Home Retail Group fell 1p to 309p.
Outside the top flight, shares in brewer Marston's were 3.56% higher, up 3.2p to 93.1p, as the company offset any disappointment over lower full-year profits by reporting an improved sales trend at its managed pubs in recent weeks.
Transport firm Go-Ahead was another stock on the front foot after it announced the disposal of its loss-making aviation services business. Shares were 42p higher at 1270p, even though it warned the move would result in a £20m hit to results.
Property website Rightmove was the biggest faller in the FTSE 250 Index amid market rumours that Google was considering the launch of an online property portal. The fears sent shares 10.33% or 57.6p lower to 499.9p.
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