FTSE down 2%

Lloyds Banking Group slid 20% today after it kept investors guessing on its involvement in the scheme to insure billions of pounds of toxic assets.

The decline of 15.2p to 59.8p meant Lloyds lost a large slice of the gains achieved yesterday after RBS announced its participation in the government’s asset protection scheme at levels seen as favourable to the company.

Nerves were heightened by trading in New York last night after the Dow Jones Industrial Average finished the session 1.2% lower. The FTSE 100 Index shed 2% or 69.7 points to 3845.9 by mid-morning.

As well as the failure to announce terms on the asset protection scheme, Lloyds shares were impacted by its annual results. Although the figures were in line with expectations, investors were spooked by £10.8 billion losses at HBOS and the scale of bad debts at its acquisition’s corporate and retail arms.

Royal Bank of Scotland also lost some of its gains seen on Thursday, following a drop of 14% or 4p to 25p. Barclays, which may also participate in the asset protection scheme, fell 11.5p to 101.5p, while HSBC slipped 22.25p to 504.75p ahead of annual results due on Monday.

Elsewhere, shares in bookmaker William Hill fluctuated after it said revenues increased 9% in the first eight week of 2009, offsetting a 3% fall in annual operating profits and the withdrawal of the company’s full-year dividend.

The company, which announced plans for a £350 million rights issue, saw its shares hit positive territory before later retreating to stand 11p lower at 235.75p, a drop of 4%.

Shares in property website Rightmove jumped 6% or 13p to 220.5p after it posted a 40% rise in annual profits and said plunging housing prices were tempting potential buyers back into the market.