Scots Stocks: Banks Feel the Brunt of Renewed Fallout From US Credit Crunch

By NO BYLINE

SCOTTISH banks were again under pressure following the renewed concerns over the US credit crunch.

Royal Bank of Scotland, one of the biggest fallers in the FTSE 100 index, dropped 23.25p – or 4.7 per cent – to 475.5p, while HBOS shed 19p to 825p.

British Energy was well up on the Footsie risers board as the nuclear power firm put back some of the losses seen after the emergence of output problems at Hartlepool and Heysham. The shares rose 13.5p to 542.5p.

Crude oil prices rose above dollars 96 again, which boosted oil and gas exploration groups. Abbot Group, the Aberdeen oil rig company, led the way, up 10.25p to 352p, a gain of 3 per cent.

Cairn Energy put on 10p to 2,401p, while Dana Petroleum added a penny to 1,282p. But Melrose Resources lost ground after the oil and gas company said it had postponed its 250 million (GBP 173.8m) senior subordinated notes offering to institutional investors due to recent market conditions, which have had an impact on the expected interest rate. It added, however, that its financial position was strong.

The shares closed 20p lower at 350p, a loss of 5.4 per cent.

Elsewhere, Stagecoach and Wolfson Microelectronics, which lost 6.25p to 257.5p and 9p to 240.25p, respectively.

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