Updated from 1:06 p.m. EDT
The financial sector joined the sliding broader market for the third straight session Thursday, largely scooping just under the major indices. Weighing heavily was
Security Capital Assurance
The Bermuda-based insurer slid 3.6% to $30.61 in unusually active trading on news that its parent,
, is offering 9.68 million SCA shares at $31 apiece, thereby slashing its stake in SCA to roughly 47.5% from 63%. If underwriters fully exercise their 1.45-million-share purchase option, XL will own just 45.3% of the company.
SCA priced the shares postbell Wednesday after filing for the offering two weeks ago. XL closed Thursday off 2.7% at $80.49.
Financial Sector Index, which harbors both SCA and XL, slumped 174.24 points, or 1.8%, to 9651.73. The KBW Bank Index fared a bit better but was still down 1.3% to 113.87.
Also suffering were both
Yardville National Bancorp
( YANB) after the former agreed to buy the latter for $35 a share in stock and cash -- a slight discount to Yardville's latest closing price. The $403 million transaction will likely close in the fourth quarter and should be accretive to PNC's per-share earnings in 2008.
Pittsburgh-based PNC lately lost 0.7% to $71.32; Yardville, of New Jersey, slumped 4.5% to $34.15.
stumbled 3.8% at $22.06 even though the Kansas City, Mo., tax preparer raised next quarter's dividend by 5.6% to 14.25 cents a share, to be paid in October; and mortgage lender
( FNM) slipped 61 cents to $63.44 despite a Friedman Billings upgrade to outperform. The analyst cited improving option-adjusted spreads, among other things.
A couple of financial stocks, however, benefited from positive analyst calls. Pennsylvania's
gained 3% to $22.26 after Stifel Nicolaus raised its rating to hold from sell. Meanwhile, Keefe Bruyette upped
to outperform from market perform. Shares added 2 cents to $18.17.