(Reuters) -London’s FTSE 100 retreated from the previous session’s record high on Thursday, as declines in shares of HSBC weighed down the banking sector, while gains in miners kept losses in check.
The blue-chip FTSE 100 fell 0.4% to 9,511.79 as of 1043 GMT, while the mid-cap-focused FTSE 250 was up 0.1%.
HSBC dropped 5.8%, set for its steepest one-day decline in more than six months. The bank said it plans to buy out minority interests in Hong Kong’s Hang Seng Bank, where it holds a majority stake, in a deal worth HK$106.1 billion ($13.63 billion).
The broader banking sector weighed heavily on the market with a 3.3% decline.
Lloyds Banking Group dropped 2.6% after the lender warned it would need to set aside more cash to cover the costs related to motor finance scandal. Merchant bank Close Brothers fell 4.4% to the bottom of the FTSE 250.
The wider homebuilders index shed 1.5%, with Taylor Wimpey and Barratt Redrow dropping 4.3% and 3.3%, respectively.
A survey published by the Royal Institution of Chartered Surveyors said Britain’s housing market lost momentum for a third consecutive month, and its measures of buyer demand and agreed sales were stuck in the negative territory in September.
On the flip side, base metal miners gained 0.9%, tracking a rise in copper prices, with Anglo American gaining 1.8%, among the top performers on the FTSE 100.
Volution Group rose 5.7% to a record high after posting strong fiscal year results, helping the construction and materials sector outperform its peers.
The FTSE 100 has been rallying to record highs, on a boost from resource-linked stocks and banks this week. It recorded its best weekly showing since October 2008 on Friday as renewed investor interest in pharma stocks led them to regain some ground lost through the year.
Secure Trust Bank shares slipped 19% after the bank said it expects annual underlying profit before tax to fall below market expectations.
(Reporting by Avinash P and Purvi Agarwal in Bengaluru; Editing by Vijay Kishore)
