RBS’S fall sees Footsie end session lower

Market report Perry Gourley

Royal Bank of Scotland led London’s top flight into the red after the UK government confirmed it was offloading £2.5 billion worth of shares at a mammoth loss to the taxpayer.

The FTSE 100 ended the day down 54.49 points, at 7,686.8, with RBS among the biggest fallers. Shares in the bailed-out bank ended down 14.9p at 266p.

It came after UK Government Investments (UKGI) sold 925 million RBS shares at 271p each, bringing the public holding in RBS down from approximately 70.1 per cent to 62.4 per cent. However, the taxpayer will book a £2.1bn loss on the sale.

Laith Khalaf, senior analyst at Hargreaves Lansdown, said that the market reaction showed traders bringing the share price “into line with the price offered by the government”.

He added: “We can expect this pattern to repeat as the government continues its sale in the next few years.

“In the long term the UK government selling down its stake in the bank is a positive development for RBS shareholders, as it represents a gradual return to business as usual.

Sky ended the day 4p higher at 1,354p as the prospect of a bidding war between 21st Century Fox and Comcast for the broadcaster moved a step closer.

Culture Secretary Matt Hancock said that Sky News must be sold if Rupert Murdoch’s Fox is to secure UK government approval for its £11.7bn takeover. Fox has already submitted proposals to divest Sky News to Disney. A separate £22bn bid for Sky from US broadcasting giant Comcast was cleared by Hancock. The online electrical goods retailer reported a bumper rise in sales as it continued its expansion, although losses widened. Shares in the Glasgow-based fast fashion retail chain dipped despite reporting strong increases in sales and profits in its last financial year.