UK shares rebound, Barclays leads the pack
After suffering losses for three sessions in a row, the UK stocks rebounded led by Barclays and other financial companies. The trading in Barclays stock resume on Monday after suspension of trading for a day. In general, The FTSE 100 index dropped 9.2 percent in 2016 so far.
The FTSE 100 index rose 0.7 percent on Wednesday in London market. Over 80 percent of FTSE 100 index stocks gained. Despite the volatility index hovering at the highest level since September 2015, the stocks recouped losses. Barclays Plc and Prudential Pcs rose over two percent.
Barclays and Prudential started recovering from their lowest levels recorded in 2012 and 2013 respectively. Tesco Plc shares were up for a second consecutive session. Hikma Pharmaceuticals Plc dropped by a whopping 18 percent after reduction in cash position, as reported by Bloomberg.
The FTSE 100 index fell 9.2 percent this year so far, but less than regional index Stoxx Europe 600 index. The mining stocks surge recently helped Stoxx Europe 600 index to pare losses. The broader FTSE all-share index rose, while Ireland's ISEQ Index gained 2.1 percent. The index recovered from six-day loss since 2011.
The trading in Barclays stock resumed on Monday after suspension for a session due to high volatility. The concerns were renewed over the impact of negative interest rates on the banking sector. The negative interest rates are expected to influence the global growth and profitability as well. After the suspension, Barclays shares were lower 5.3 percent, according to Reuters.
Barclays has appointed Paul Compton replacing COO Jonathan Moulds. Moulds was hired by Barclays 13 months ago and he was looking after planning and implementing ring-fence. He was dealing with a tougher task as bank should meet the new regulations which split the retail bank from the investment banking operations. Recently, there were frequent changes at the top brass of Barclays. Chairman John McFarlane assumed charge in April 2015 and fired former chief executive Antony Jenkins in the summer, before hiring Staley in December.
The Telegraph reports that Compton's new responsibility includes Barclay's operations and technology, administration, corporate real estate services and cost cutting exercise. Jes Staley, Chief Executive, said: "For nearly twenty years Mr Compton has served in a variety of senior operating roles. His huge directly relevant experience will prove invaluable as we continue our strategic transformation and manage the required changes under structural reform."
Hikma shares reeling under pressure. Hikma is in the process of acquiring Boehringer Ingelheim's Roxane business. The unexpected drop in sales in 2014 eroded cash reserves. ARM Holding Pls fell 4.9 percent after posting quarterly profit meeting forecasts made by analysts.
Barclays is undergoing Structural changes, which are reshaping the bank. It is cutting back its investment bank's cash equities business in Asia and closing offices across parts of the continent, as well as in Brazil and Russia.
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