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4.30pm: London rises on SVB deal

London’s stock market closed higher after a deal for Silicon Valley Bank eased concerns about the banking sector.

Loans and deposits at the US regional lender, whose problems sparked global turmoil in the banking sector, have been acquired by First Citizens.

It is hoped the deal will restore calm to financial markets.

SVB, a key lender to the tech industry since the 1980s, became the biggest US bank to fail since 2008 when regulators seized it after a sudden run on deposits. Its UK arm was bought by HSBC for £1.

Banking stocks closed last week sharply lower last week, with Deutsche Bank bearing the brunt of the losses, falling 8.5% on Friday, as the price of its credit default swaps shot up. The stock is down 22% so far in 2023.

Nevertheless, investors seem somewhat relieved the dramatic events of the prior weekend with Credit Suisse were not repeated with Deutsche Bank this past weekend.

The FTSE 100 finished the session 66.32 points (0.9%) higher at 7,471.77.

Among AIM stocks, Scottish gold miner Scotgold saw its shares plunge 64% after it raised ‘going concern’ issues over a core seam.

The company is raising $500,000 in working capital to ensure a key operation at its Cononish mine near Loch Lomond can continue.

It alswo said it has also become aware that the email accounts of the executive directors have been accessed by unauthorised persons and “specious emails” sent in their names to numerous people.

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7am: Plexus

Oil and as engineering services group Plexus reported a loss of £2.07m for the half year (2021: £1,953k).

The loss comes after absorbing depreciation and amortisation costs of circa £0.8m. Included in the statement of comprehensive income is a charge of £122k to recognise the fair value of the derivative financial instrument embedded in the convertible loan.

Chairman Jeffrey Thrall said: “A strengthened order book, new tender opportunities, an improved working capital position, and a shift in attitude towards the O&G sector..point to Plexus as an opportunity that I believe should be attractive to investors as we advance into 2023 and beyond.”

Sales revenue came in at £709k (2021: £734k).

Global markets

Hang Seng: down 0.8% at 19,752.51

Nikkei 225: up 0.5% at 27,510.50

S&P/ASX 200: closed up 0.1% at 6,962.00