London’s equity markets opened higher on Monday, lifted by sharp gains in banking shares following a long-awaited court ruling on motor finance commissions and a proposed redress scheme by the UK regulator.
The FTSE 100 rose 0.4% to 9,103.82, while the FTSE 250 gained 0.6% to 21,831.60. The AIM All-Share edged up 0.2% to 758.38.
Lloyds Banking Group led the FTSE 100, jumping 7.5% after the UK Supreme Court overturned a previous ruling that had intensified fears over widespread compensation claims related to car finance commissions.
The court ruled that dealers acting as credit brokers do not owe fiduciary duties to customers, and that typical commission payments are not considered bribes. However, it did find unfairness in one case and awarded compensation.
Lloyds said it had already accounted for a range of possible outcomes and continues to assess the implications.
Close Brothers soared 21% on the FTSE 250. The merchant bank welcomed the ruling and noted the Financial Conduct Authority’s Sunday announcement of a proposed industry-wide redress scheme, with a consultation expected by October.
Europa Oil & Gas jumped 35% after announcing that Antler Global, in which it holds a 42.9% stake, has entered talks with a major energy firm to farm out an interest in an offshore Equatorial Guinea licence.
Westmount Energy climbed 21% after noting that investee Africa Oil had restarted drilling offshore Namibia and completed key seismic work. The results support further high-impact exploration and development of the Venus project.
Goldplat sank 7.4% after warning that full-year profit will be significantly below expectations. The miner blamed operational changes in Ghana and foreign exchange losses. Adjusted pretax profit is now expected around £2.6 million, down sharply from £6.0 million last year.