Absa resumes slides, Barclays weighs

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absa_may 6 Independent Newspapers Photo by Simphiwe Mbokazi.

Shares of Absa, the South African subsidiary of Barclays Plc, extend their slide following a profit warning and because of troubles facing its parent company.

The stock is down 2.4 percent at 137.83 rand - a drop of 12 percent since the lender flagged last week that first-half earnings would drop by as much as 10 percent due to an increasing numbers of bad mortgages.

“That puts them on the back foot,” says Nilan Morar, head of trading at Global Trader. “The scandal around the fixing of Libor is also an issue for them.”

Barclays was last week fined $453 million by British and US regulators for making inaccurate submissions on the Libor interest rate. Uncertainty is hanging over the bank, with pressure mounting for Chief Executive Bob Diamond to resign. - Reuters

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