RBS shares rocket, HBOS fall, FTSE-100 strong gains

Royal Bank of Scotland (RBS) saw a huge boost in its share price today after talks regarding a cash injection from selling stakes in its insurance division. Shares in RBS jumped 15.9p to 84.5p.

Reports that reinsurer Swiss Re and CVC the private equity group could pay about £3 billion for a 51 percent share of RBS’s Churchill Businesses and Direct Line sent the share soaring. Although Credit Suisse analysts cut the target price for RBS to 70p from 120p and issued a warning note on the whole sector even after the UK government’s £37 billion bailout this did not stop RBS shares shoot up in value.

However, HBOS shares fell 1.1p to 78.9p after concerns grew regarding the success of the proposed takeover by Lloyds TSB jumping 14.7p to 173.5p. Credit Suisse moved the target price of HBOS to 105p from 145p

The FTSE 100 closed up 219.67 or 5.41 percent at 4282.67. The FTSE 100 rise was again in the top ten, which just shows how volatile the market it at present. The activity in London sent Wall Street’s Dow Jones shooting up 150 points by the time the London Stocks closed, as well as reports out by analysis expecting another half a percent base rate cut by the federal government next week.

Source: Guardian