Business

FTSE 100 ends up but RBS shares hit by more losses

City traders Image copyright Getty Images

(Close): UK shares closed higher on Friday following Thursday's interest rate cut, but RBS shares fell after it reported worse-than-expected losses.

After rising 1.6% on Thursday, the FTSE 100 climbed another 53.31 points, or 0.79%, to 6,793.47.

However, Royal Bank of Scotland shares dived 7.19% after it reported a £2bn loss for the first half of the year, which it blamed on "legacy issues".

RBS also said it would not separate and list its Williams & Glyn business.

Shares in housebuilders rose as updates from two firms in the sector helped to ease fears of a Brexit-induced downturn in the sector.

Bellway rose 5.3%% after the housebuilder said customer confidence and trading conditions have "remained strong throughout the year", while bricks and concrete products maker Ibstock jumped 7.7%% after it said trading was continuing at normal seasonal levels.

The broader FTSE 250 index, which includes more British-based businesses, gained 1.28%, or 221.03 points to close at 17,465.35.

On the currency markets, the pound steadied after having fallen in the wake of the Bank of England's rate cut on Thursday.

Having risen during the day, sterling subsequently fell slightly against the dollar to $1.3066, a drop of 0.32%.

It was 0.13% higher against the euro at €1.1794.