Sector movers: Lloyds drags banks lower after downgrade

The banking sector was out of favour on Friday, dragged lower by FTSE 100 giant Lloyds.RBS downgraded Lloyds from buy to hold, saying that there appears to be a lack of catalysts for the shares in the near-term. "Given what looks to us like an overambitious top-line strategy, a tough economic backdrop, regulatory uncertainty and limited repatriation of capital until 2015, we see little potential for the shares to achieve a sustainable re-rating in the next 12 months," said analyst Asheefa Sarangi and Ian Smillie. Barclays and Standard Chartered were also among the worst performers on the blue chip index.Meanwhile, strong gains for Vodafone boosted the mobile telecoms sector to the top of the pile.Vodafone picked up the phone to some good news this morning after learning it will receive a dividend worth £2.8bn from US associate company Verizon Wireless. Verizon is paying a total dividend equivalent to £6.1bn and Vodafone, which has a 45% stake in the US mobile phone firm, will receive its payment on 31 January 2012, most of which it will pass on to its own shareholders. Sector peer Inmarsat was wanted a day after reports surfaced that it would benefit from a massive deal signed by its US partner group LightSquared. LightSquared, which operates a wireless broadband and satellite network in the US, signed a 15-year spectrum hosting and network services agreement with Sprint Nextel worth a total of $9bn. BCTop performing sectors so far todayMobile Telecommunications 3,936.54 +4.48%Industrial Metals & Mining 7,424.94 +3.89%Fixed Line Telecommunications 2,382.03 +1.09%Electronic & Electrical Equipment 3,315.64 +0.97%Chemicals 7,523.76 +0.64%Bottom performing sectors so far todayBanks 4,151.77 -1.83%Real Estate Investment & Services 1,660.03 -1.27%Household Goods & Home Construction 6,667.80 -1.24%Electricity 8,257.08 -1.16%Mining 25,082.35 -1.05%