By Barbara Kollmeyer, MarketWatch
MADRID (MarketWatch) -- London stocks closed slightly higher
Monday, with banks getting a lift after global regulators cut the
industry a break on leverage-ratio rules. Retailers stayed in the
spotlight, with shares of Debenhams PLC gaining on news a major
sporting retailer had taken a stake in the department-store
chain.
The FTSE 100 index closed 0.3% higher at 6,757.15.
Barclays PLC (BCS) rose 2.9%, The Royal Bank of Scotland Group
PLC (RBS) added 3.1%, and Lloyds Banking Group PLC (LYG) gained
1.2% after the Basel Committee on Banking Supervision eased a
leverage-ratio rule for banks on Sunday.
Regulators said they had revised the definition of its leverage
ratio that will allow banks to report lower levels of overall
risks, in a move that lifts pressure on banks to shed assets or
raise more capital to meet that requirement.
Investec analysts said in a note that they rate Barclays a buy,
adding that the Basel news "offers further comfort, albeit against
measures where Barclays's compliance was not, in our view, in
doubt. Expect a continuing relief rally as the Barclays 'capital
arbitrage' plays out," said the analysts.
Shares of Wm Morrison Supermarkets PLC rose more than 6.4%,
making it the FTSE 100's top gainer. The Financial Times reported
over the weekend that hedge fund Elliot Associates and other
activist investors are pressuring the supermarket chain to overhaul
its property portfolio. Morrison's declined to comment to the
newspaper.
Away from the main index, shares of Debenhams PLC closed up 5%
after Sports Direct International PLC said it has taken a 4.6%
stake in the retailer. Sports Direct shares fell 1.1%.
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