Lloyds climbs after news of chairman stepping down

Lloyds Banking Group climbed the FTSE 100 Index leaders board today after news that Victor Blank will step down as chairman.

Blank has been a target of shareholder anger after the bank’s rescue of ailing HBOS forced it seek state support. Lloyds was 5.5p higher at 94.7p – or 6% – as it also unveiled plans to raise £4bn (€4.5bn) from investors.

After an uncertain start the wider FTSE gained some momentum by mid-morning to stand 39.5 points ahead at 4356.7.

Sentiment strengthened as US futures markets pointed to a higher opening on Wall Street, while bargain hunters were also on the look-out for cheap stocks following falls for the Footsie last week.

Alongside Lloyds, other banks began the week on the front foot, with Standard Chartered and Barclays up 60p to 1235p and 10.5p to 278.5p respectively. HSBC added 21p to 553p after Citigroup lifted its target price.

The banks were only surpassed by travel firm Thomas Cook at the top of the risers board. The stock added 25.75p to 249.5p, making up ground lost last week.

Elsewhere media and financial group Thomson Reuters added 57p to 1736p after an upgrade from Morgan Stanley analysts.

Even further progress was hampered by a poor session for heavyweight mining stocks despite some positive broker comment. The sector accounted for the top four FTSE fallers, led by Lonmin, which lost 55p to 1116p.