Several major UK banks have seen their share prices dip this morning, on the back of the crisis that engulfed Bear Stearns.
Shares in HBOS dropped just under 10% this morning, from 528p to 478p, while Barclays’ share price fell 6.47%, from 433p to 405p, and Lloyds TSB saw its stock drop 3.86% from 421p to 405p.
Shares in Royal Bank of Scotland fell 7.79% from 333p to 307p. HSBC saw only a minimal decline of 1.18%, from 762p to 749p.
John Goodall, private client research analyst at WH Ireland, says a sheep mentality prevailed this morning.
He adds: “There’s a lot of panic out there and quite a lot of it is undue.
“It seems people are moving beyond the fundamentals and just panicking. I can see it will be like this for the next couple of days – there has been a flight to the defensive.”
Goodall adds: “If you look at HSBC, for example, its Tier One capital ratio indicates how strong its balance sheet is and many other banks have recently raised their dividend payment – these are the kind of fundamentals investors need to consider – but everyone is falling over themselves to get out.”