Market round-up: HSBC leaving UK threat and hung parliament uncertainty drags FTSE 100 down

The threat of HSBC leaving the UK and the uncertainty of a hung parliament weighed down on the FTSE 100 on 5 May.

The index of leading shares closed at 6,927.58, down -58.37 (-0.84%), its lowest level since 2 April, as the HSBC board discussed the possibility of relocating.

A mainstay in Britain since 1993 and the country's biggest bank, HSBC has said it will decide in the coming months whether to relocate or not after the coalition government announced it would increase the bank levy from 0.156% to 0.21%.

The FTSE 100 was up 0.38% at 7,012.52 by midday, rising for the third straight session, but with the general election just days away and with political outlook uncertain, the market failed to rally during the afternoon. Meanwhile, the FTSE AIM 100 closed at 3,395.73, down 9.43 (-0.28%).

A huge surge in the US trade deficit also dragged down the index. The gap between imports and exports widened to $51.4bn (£33.8bn, $45.8bn) in March - the highest trade gap since October 2008.

FTSE 100 biggest risers

Coca-Cola HBC AG +41.00 (+2.98%) 1,417.00
Fresnillo +18.50 (+2.60%) 730.50
Dixons Carphone +7.80 (+1.87%) 425.90
Sage Group +7.50 (+1.53%) 496.50
Royal Dutch Shell Plc A Shares +31.50 (+1.53%) 2,091.50

FTSE 100 biggest fallers

International Consolidated Airlines Group SA -20.50 (-3.68%) 537.00
Imperial Tobacco -109.00 (-3.38%) 3,120.00
Whitbread -170.00 (-3.26%) 5,050.00
HSBC Holdings -20.40 (-3.16%) 625.90
Shire -150.00 (-2.80%) 5,205.00

AIM biggest risers

Tissue Regenix Group +1.75 (+9.33%) 20.50
Fusionex International +17.50 (+5.43%) 340.00
Sirius Minerals +0.50 (+3.70%) 14.00
Numis Corporation +8.00 (+3.20%) 258.00
Sinclair IS Pharma +1.25 (+2.96%) 43.50

AIM biggest fallers

Globo -4.50 -8.11% 51.00
Amerisur Resources -1.50 -4.41% 32.50
James Halstead -12.75 -3.83% 320.00
RM2 International SA -2.00 -3.08% 63.00
Powerflute OYJ -1.63 -2.87% 55.00