High St banks strong despite Argentina

DON'T cry for us Argentina was the call that went up from the High Street banks today. Despite the stricken gauchos defaulting on interest charges on loans of almost 92 billion, the big sell-off in shares of some of the main lenders failed to materialise.

Barclays shed 4p at 2221p, Lloyds TSB eased 51/2p at 730p, and HSBC slipped 2p to 8001/2p, while Standard Chartered was 121/2p better at 825p, and Royal Bank of Scotland, which includes NatWest Bank, put on 17p at 1647p.

The Argentinian capital has suffered riots and looting during the past week that has left 25 people dead. The country's new government has frozen interest repayments and wants to introduce a third currency, likely to be named the Argentino, to help revive the ailing economy.

One broker said the banks are likely to be forced to make provisions for the loans to Argentina but there is no sign of panic: "It is not as if this crisis materialised overnight. People have seen it coming for some time. The banks will have spread the risk and remain resilient."

But set against this dull backdrop, the rest of the equity market was always going to find it an uphill struggle to make headway.

Not only were trading conditions thin but the spread between bid and offer in many stocks was widened, making it even tougher to try to deal. As a result, prices marked time for much of today's shortened trading session. The FTSE 100 index fell six points to 5153.2.

Pearson was the best blue-chip performer, climbing 271/2p to 784p after agreeing to sell its 22% stake in rival media group RTL for e1.5 billion (932 million) to Bertelsmann of Germany. Only last week, Pearson rocked the City with its second profits warning in as many months, blaming a downturn for its educational publishing side in South America.

A weakening oil price overnight meant a bumpy start for the big oil producers with BP down 41/2p at 524p, while Shell rallied from an opening fall to trade 5p up at 475p.

An attempted rogue trade meant Carphone Warehouse was one of the biggest fallers, losing 8p at 120p having briefly touched 100p after one trader offered only one share (Yes, that is right!) at 100p. The trade was later withdrawn, enabling the price to rally. A rogue trade was also behind the leap of 85p to 485p in Debenhams.

The price of the department stores group later settled 5p better at 400p.

Cookson limited the fall to only 1/2p at 88p despite taking the decision to scrap next year's dividend, or until certain financial targets have "been achieved". It has meanwhile arranged a 430 million multi-currency revolving credit facility.

It has debts of around 800 million.

Trading was resumed in shares of Mottram Holdings on AIM following its acquisition of World Sports Solutions, the sports marketing specialist that boasts clients such as Sir Frank Williams' F1 motor racing team, golfer Gary Player and various football clubs that include Barcelona, Paris St Germain and Athletico Madrid. The price touched 2p before reverting to unchanged at 13/4p. Mottram is to change its name to World Sports Solutions.

Aggregate Industries marked time at 861/2p after a line of one million shares went through at 87p.

_Prices and indices in this section are supplied from various sources and calculated at different times and may not always match those listed in the tables. Ofex prices relate to the previous close.

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