Banks see gains following ''strong few days''

By MoneyhighStreet Staff. Published on September 2, 2008 This post currently has no comments.

Gordon Brown
Bank share prices gained at the close on the 100, coming after the UK government unveiled plans to bolter the faultering housing market.

Barclays, HSBC, Lloyds TSB, Royal Bank of Scotland and Standard Charter all gained between 0.54 and 2.76 per cent at the close of business.

HSBC enjoyed the largest gains, rising 18 points to close at 886.75, compared to HBOS, which fell by 8.75 to close at 308.25.

Lloyds TSB rose by four points, while Standard Charter and Barclays rose by eight and 9.75 points respectively.

Measures unveiled by Gordon Brown that could have eased pressure on these lenders include a raising of the stamp duty threshold exemption to houses valued at £175,000 or less.

The plans also included measures that will help steer homeowners away from repossessions.

Commenting earlier in the day, Edward Menashy of Charles Stanley took a different view.

He told Reuters: "The market has been going strong in the last few days. I don''t think as such the package, which is only worth £1 billion…is the heart of the matter."