Banks push FTSE low

LONDON.
WEAK banks pushed Britain’s top share index into negative territory on Friday, pressured by renewed concerns over European sovereign debt, while retailers were hit by worries about pain ahead on the high street.
The FTSE 100 index was down 16,64 points, or 0,3 percent, at 6 003,37, after it closed down 0,5 percent at                            6 020,01 on Thursday.
Banks extended their decline from the previous session when the mood was darkened once again by sovereign debt fears, after Portugal’s government bond spreads widened.
Portugal is seen by many economists as the next likely country that will need a bailout in the eurozone after Greece and Ireland, but the government insists it needs no foreign aid.
“The banks are the biggest drag on the FTSE this morning on concern about the sovereign debt situation and Portuguese bond yields,” Michael Hewson, market analyst at CMC Markets, said.
Barclays, scheduled to report full-year results on Tuesday, was the worst off, shedding 1,2 percent.
“Barclays have had a decent run prior to the results coming out, and when they do come out, there could be limited upside,” Manoj Ladwa, senior trader at ETX Capital, said.
Elsewhere among financials, Legal & General grabbed the top spot on the blue chip leader board as Nomura lifted its price target for the life insurer to 171 pence from 150.
“We think the market is underestimating the growth potential of L&G’s asset management operations,” the broker said in a note. — Reuters.