Shares in Lloyds Banking Group fell more than 5% this morning after the government sold another 7.8% of its stake in the bank last night.
The shares opened this morning at 74.5p, 5.7% below their closing price of 79p last night, as the government announced the sale of 5.35bn shares at the price of 75.5p.
The price has recovered since to trade at 76p by 9.35am, 4% down from last night's closing price.
The first sale in September, which saw a 6% stake in the group returned to shareholders, was priced at 75p and raised a total of £3.2bn.
The Treasury raised around £4.2bn through yesterday's sale, which saw its stake in the bank reduced by 7.8% to 24.9%. The total raised from both sales comes to £7.4bn.
However, the FTSE 100 index was buoyed by Standard Life Investments, whose shares surged on the news of its acquisiton of Ignis Asset Management; the shares were trading 5.4% up at 394p by 9.40 am.
Hargreaves Lansdown also continued to climb, with shares up 3.3% at £14.52. The wider FTSE index is up 0.5% at 6,638.
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