HBOS shares soar by 15%

by Richard Kilner

Story link: HBOS shares soar by 15%

After taking a battering in recent days, HBOS enjoyed a surge in its share value which soared by 15% over the course of a single day.

The multi-billion pound additional value is due to the £6m of shares purchased by senior executives at the bank, led by Andy Hornby, to reinvigorate confidence in the firm.

The move worked spectacularly well, helping to dissolve rumours of financial turmoil at the bank and promoting confidence.

Indeed, it yielded the single largest increase in share value since HBOS was created, seven years ago.

Previously its highest increase had been 10%, caused by very impressive performance results in 2002.

Spokesmen for the bank have been cautious in their analysis of the day’s excellent trading, though it is plain that the news is very welcome for the firm.

Although HBOS was far and away the biggest gainer yesterday, the FTSE as a whole enjoyed a 3% increase in value, with other banks also performing well.