London shares tumbled on Monday as the resignation of two Barclays directors added to gloom about scandals in the UK banking sector
The benchmark FTSE100 index ended the day 100.40 points or 1.58 percent lower at 6,246.84 points.
“European markets opened cautiously today… as investors opted to cash in on last Friday’s thundering finish to the trading week,” said Spreadex trader Shavaz Dhalla.
“The true test for optimism will be whether the markets can sustain the recent highs in the face of a potential string of poor data from the eurozone,” Dhalla added.
“If such optimism fails to stand the test of time, investors could find themselves swimming in a ‘sea of volatility’,” he said.
Barclays sank 2.83 percent to 291.50 pence after news that its finance director and top legal expert had decided to leave the bank, as the British lender undergoes a shake-up in the wake of the Libor rate-rigging scandal.
“Barclays has today announced that the Group Finance Director Chris Lucas, and the Group General Counsel Mark Harding, have decided to retire from the company,” the bank said in a statement.
Lucas is one of several past and present Barclays staff being investigated over whether the bank broke rules over a sizeable cash injection from Qatar in 2008 amid the start of the global financial crisis.
State-rescued Royal Bank of Scotland dropped 3.49 percent to 328.60 pence as investors worried about the potential size of the bank’s own Libor fine, yet to be quantified.
Other heavy losers included insurer Aviva, the former Norwich Union, down 4.40 percent at 351.90 pence and building materioals group CRH, 4.31 percent lower at 1,310 pence.
Centrica fell 1.16 percent to 349 pence following the energy company’s announcement it is pulling out of a joint-venture deal to build up to four nuclear power stations in Britain, citing the project’s rising costs.
The sole big riser was Randgold Resources, which jumped 3.12 percent to 6,275 pence, spurred by the South African gold miner’s announcement of record production and profit levels.
Its results showed profit for the year up 16 percent at $511 million and production up 14 percent at 794 844 ounces of gold.
“We start 2013 in good shape and with a renewed focus on growing our production and managing our costs,? said chief executive Mark Bristow.
Another lively week is in prospect for UK company news, with results scheduled from a swathe of blue chip stocks.
Energy groups BP and BG will unveil fourth quarter figures on Tuesday, as will microchip specialist Arm Holdings.
On Wednesday it is the turn of pharmaceuticals giant GlaxoSmithKline.
Then on Thursday, mobile phone operator Vodafone is promising an interim management statement on last year’s fourth quarter.
On the currency markets, sterling edged up to $1.5742 at 5:00 pm from $1.5724 on Friday and strengthened to 1.636 euros from 1.1501 euros before the weekend.
London shares tumble after Barclays resignations
