Stock markets ‘plunge’ to record double digits: A string of major UK banks put on alert

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Britain’s financial sector is now facing growing pressure as bank stocks “plummet out of control.”

Data from shareprice.com showed UK banks were on alert, with shares hitting a six-month low of 3,338 points.

Chart of bank stock price fluctuations in the past six months. source: share price

Despite reporting better-than-expected third-quarter 2023 results, some bank stocks still recorded sharp losses as interest rate increase. Specifically, Natwest Group topped the list with a whopping 14% fall, followed closely by Lloyds Bank, which fell 11%.

It is worth noting that both Natwest and Lloyds were bailed out in 2008 and have struggled to recover since then. But so far, all efforts have appeared “hopeless” and the stock price remains on the floor without a major breakthrough.

Stock price fluctuation charts of Natwest, Barclays, and Lloyds since 2008.Source: Trading Views

Similar to the two banks mentioned above, Barclays’ share price has been significantly affected, falling 17.5% in the past month after Bank of America downgraded its rating due to uncertainty over the restructuring process.

British stone. James Place, one of the UK’s largest financial services institutions, has also fallen as much as 26% in the past month and 44% from the beginning of the year. In addition, the company recently announced the suspension of trading in its real estate funds. This further exacerbated the company’s woes.

Finally, another financial services company, Hargreaves Lansdown, is also down 19% year to date and 14% last month.

SJP and HL stock prices.Source: Trading Views

The broader downturn in Britain’s banking sector highlights the pressure currently facing the country’s financial services firms. At the same time, this also sends a red flag to stakeholders, requiring them to remain vigilant amid uncertain market conditions.

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