The FTSE 100 dives 45.65 points to 6,540 as Greece moved a step closer to leaving the eurozone over the weekend. The Greeks voted to reject the austerity conditions linked to a fresh bailout package in Sunday’s referendum.
Banks led the fallers in London during early trading with Royal Bank of Scotland (RBS) diving 2.3% to 350.7p, closely followed by a 1.8% drop by Barclays (BARC) to 258p while HSBC (HSBA) falls 1.4% to 564.7p.
Elsewhere, quasi-utility Royal Mail (RMG) benefits from safe haven appeal as well as a reiteration ‘buy’ from investment bank Goldman Sachs and an upgraded price target of 610p. Shares in the mail operator gain 0.7% to 509p.
Asset managers, whose fees are tied to the levels of financial markets, take a tumble on falling European markets and losses in Asia overnight. Alternatives specialist Man Group (EMG) is among the big losers, shedding 2.5% to 149p. Others joining the slump include Jupiter, down 2.4% to 432p; Henderson (HGG), down 2.3% to 254p and Schroders (SDR), down 2.2% to £31.03.
Stepping out in a new market helps lift oil services firm Gulf Marine Services (GMS) - up 4.3% to 135.6p as one of its large class of self-propelled self-elevating support vessels (SESVs) is contracted for decommissioning work.
Small scale gas-to-liquids play Velocys (VLS:AIM) sinks 8.7% to 105p as it suspends chief executive Roy Lipski pending an investigation into allegations of serious misconduct. Chief financial officer Susan Robertson will step into the hot seat in the interim and the company notes the suspension does not constitute disciplinary action and does not imply any assumption of guilt, adding that the allegations do not involve any element of fraud or financial impropriety.
High purity stevia producer PureCircle (PURE:AIM) cheapens 2.8% to 395p on a mixed full-year trading update. Despite guiding towards 73% year-on-year profits growth, the company warns sales were hit by adverse currency moves and margins impacted by foreign exchange swings and a tightening of stevia leaf supply in China.
The market reacts to dilution at Europa Oil & Gas (EOG:AIM) with the stock dropping 17.4% to 6.5p as the onshore UK focused oil and gas company announces plans to raise up to £3.4 million in a share placing and open offer. The funds will cover start-up costs on the Wressle discovery and admin costs pertaining to the group's portfolio offshore Ireland.
Branded product development minnow LiteBulb (LBB:AIM) dims 13.1% to 31.5p on a strategy change, boardroom shake-up and the lowering of full-year sales guidance. LiteBulb is calling a halt to acquisitions to instead drive organic growth, a strategy change that sees CEO Simon McGivern resign 'with immediate effect' and annual revenue estimates prudently reined in.