Today, London’s FTSE 100 opened down by over 300 basis points at 4,311 and by 11:30am was down by over 7.63 per cent, slipping below the 4,000 level to 3,984.
The UK benchmark last slumped to this level over five years ago and today’s 1047.9 point fall represents the biggest fall since Black Monday in October 1987.
The index attempted to a stage a recovery during afternoon trades, lifting from 3,898 at 14:38pm to 4,144 at 15:14pm but banks and commodities dragged on the benchmark as investor confidence ebbed away. Shares in UK companies had over a fifth of their value wiped away by the end of the day as the index closed at 3,974.
HBOS is down 18 per cent to 125p, Barclays is down 14 per cent to 208p and Lloyds TSB is down 9 per cent to 193p per share.
The latest slump comes despite aggressive global interest rate cuts and recent efforts by the UK Government to bolster the UK banking system.