The banking sector took a tumble on Tuesday (29 Jan), led by speculation that Royal Bank of Scotland (RBS), down 5% to 349.8p, is about to go under the spotlight over alleged rigging of libor interest rates. Reports suggest RBS will be fined £500 million by the UK and US authorities.
Broker Espirito slapped a 'sell' rating on both RBS and Lloyds Banking (LLOY), down 2% to 51.9p, saying they both might have to raise capital with dilutive rights issues to meet new capital requirements.
Investors were unimpressed with Aquarius Platinum's (AQP) second quarter results, sending the miner's shares down 8% to 62.75p. Attributable production from operating mines increased by 2% quarter-on-quarter to 78,987 ounces of platinum group metals. Investment bank Liberum says new chief executive officer Jean Nel has 'got off to a good start'. It comments: 'Despite the disruptions going on all around them, Aquarius still managed to achieve a fourth consecutive quarter of production growth at its Kroondal asset and in the process pushing down costs 7% quarter on quarter.'
South African miner Petra Diamonds (PDL) fell 6% to 114p after management reduced its production target by 7% to 2.65 million carats, following strikes in late 2012. Stockbroker Canaccord Genuity sees 2.61 million carats as a more realistic outcome.