Market Reports: Laughing All the Way to the Banks

Summary


LONDON'S blue-chip index outperformed European counterparts yesterday as investors piled money into banking stocks in search of good returns, after HBOS said the previous day that it would return cash to shareholders and beat this year's profit forecasts.

HBOS shares rallied 3 per cent, or 23.5p, to close at 829.5p, extending their gains so far this week to 8.8 per cent and reaching their highest level in over two-and-a-half years.

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Market Reports: Laughing All the Way to the Banks

Banks were further boosted by news from Alliance & Leicester that it was on track for its double-digit earnings per share target . A&L sha...

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