On Thursday, FTSE 100 experienced a pullback from the record high achieved in the previous session, primarily influenced by declines in HSBC shares that pressured the banking sector, although gains in mining stocks helped to mitigate the overall losses. The blue-chip index fell 0.4% to 9,511.79 as of 1043, while the mid-cap-focused index was up 0.1%. HSBC opens new tab dropped 5.8%, set for its steepest one-day decline in more than six months.

The bank announced its intention to acquire minority interests in Hong Kong’s Hang Seng Bank, in which it possesses a majority stake, in a transaction valued at HK$106.1 billion. The broader banking sector experienced a significant impact on the market, registering a 3.3% decline. Lloyds Banking Group dropped 2.6% after the lender warned it would need to set aside more cash to cover the costs related to the motor finance scandal. Merchant bank Close Brothers experienced a decline of 4.4%, positioning it at the bottom of the FTSE 250 index.

The wider homebuilders index shed 1.5%, with Taylor Wimpey and Barratt Redrow dropping 4.3% and 3.3%, respectively. A survey indicated that Britain’s housing market experienced a decline in momentum for the third consecutive month, with its indicators of buyer demand and agreed sales remaining in negative territory throughout September. On the flip side, base metal miners gained 0.9%, tracking a rise in copper prices, with Anglo American gaining 1.8%, among the top performers on the FTSE 100. Volution Group opens new tab rose 5.7% to a record high after posting strong fiscal year results, helping the construction and materials sector opens new tab outperform its peers.

The FTSE 100 has experienced a notable ascent to record highs, driven by gains in resource-linked stocks and banking institutions this week.  It achieved its most favorable weekly performance since October 2008 on Friday, as a resurgence of investor interest in pharmaceutical stocks enabled them to recover some of the losses incurred throughout the year. Secure Trust Bank opens new tab shares slipped 19% after the bank said it expects annual underlying profit before tax to fall below market expectations.