09.10.202507:52:42UTC+00FTSE 100 Falls from Record High

On Thursday, the FTSE 100 index decreased by nearly 0.5%, pulling back from recent record levels and lagging behind other European stock markets due to negative sentiment influenced by banking and housing sectors. HSBC shares dropped by 6% after revealing plans to privatize its Hong Kong-listed subsidiary, Hang Seng Bank. This strategic shift towards Asia raised investor concerns over the high acquisition premium, increased exposure to stressed commercial real estate, and the suspension of share buybacks for three consecutive quarters. Lloyds also saw a 3% decline following a warning regarding additional "material" provisions related to missold motor finance. The housing sector faced challenges, with housebuilders' shares generally weaker due to a RICS survey indicating estate agents' pessimism about sales for the first time in two years. Taylor Wimpey experienced a 5% loss, Barratt Redrow fell over 4%, and declines were also noted in Persimmon, Berkeley, and Vistry. The downtrend in Taylor Wimpey and Barratt Redrow shares was further exacerbated by ex-dividend trading.