Higher commodity prices helped the London market recover some early losses today but HBOS remained in the red after the poor take up of its £4bn (€5bn) rights issue.
The cash call's underwriters began the task of trying to offload more than £3.6bn (€4.5bn) of rights issue stock, helping to depress the price by more than 2%.
However, mining and energy firms were on firmer ground thanks to better metals and oil prices, and the FTSE 100 Index was up 6.4 points to 5383.1p. It had been 40 points lower in earlier trade.
Oil and gas services firm Wood Group was the biggest riser, up nearly 6%, or 22.75p to 409.5p, as crude clambered above the US$130 a barrel mark.
A clutch of miners made up the next few spots, with BHP Billiton ahead 63p at 1663p and Kazakhmys 58p stronger at 1410p.
HBOS lost 7p at 275.25p as Morgan Stanley and Dresdner started using a two day window to sell as much of the unwanted new shares as possible. In contrast, rivals Royal Bank of Scotland and Lloyds TSB were in better shape, ahead 4.4p to 202p and 8p to 339p respectively as last week's wider banking rally continued.
Among the fallers, Norwich Union owner Aviva eased after reports in Europe said Abbey owner Santander was in talks to sell its insurance business. Seen as a possible buyer for the business, Aviva fell 22.5p to 516.5p.
British Airways also slipped 7.75p to 234.25p on the firmer oil prices, with second tier rival easyJet down 20.75p to 319.75p.
Outside of the top flight, software company Detica jumped 28%, or 85.25p to 388.25p, after Friday's post-market announcement that it had received a takeover approach. The Financial Times said BAE Systems - down 7.75p at 436.25p - was the party involved.
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Higher commodity prices helped the London market recover some early losses today but HBOS remained in the red after the poor take up of its £4bn (€5bn) rights issue.
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