FTSE struggles to hold ground
The FTSE 100 Index struggled to hold its ground today in a subdued end to the trading week after Thursday’s sell-off.
Blue-chip stocks lost more than 1% yesterday as economic fears played on market nerves and mining stocks were punished.
The top flight lost another 2.4 points to 5265.3 by mid-morning despite gains earlier as traders looked for buying opportunities amid the weakness.
In a quiet day for company news, broker comment provided much of the momentum, although the leaders board was littered with mining firms as they recovered some of yesterday’s losses.
The sector’s best performer was Fresnillo with a 3% increase, up 25p to 896.5p. Other risers included Lonmin, which gained 30p to 1715p and Kazakhmys, up 16p at 1289p.
Meanwhile Cable & Wireless was another riser – gaining 3.4p to 139p, after JP Morgan said the company’s demerger plans would keep management motivated to deliver.
But travel firms Thomas Cook and Thomson owner TUI Travel led the fallers board after a downgrade from Morgan Stanley.
The broker is concerned about weak demand, cost pressures and rising debts at the pair, dealing a severe dent to the shares.
Thomas Cook slid almost 6%, down 12.3p at 206.2p, while TUI dropped 10.1p to 245.1p.
A gloomy assessment of prospects from the UK’s biggest building society, Nationwide, also did little to help bank shares today.
Nationwide predicted record low interest rates until at least the final quarter of next year and downward pressure on house prices.
Among the listed banks, Barclays lost 5.5p to 302.9p, Royal Bank of Scotland was down 0.6p at 35.4p and Lloyds Banking Group was off 0.47p at 89.47p.
In the FTSE 250 Index, the biggest riser was buy-to-let lender Paragon. The stock moved 3% or 4.9p higher to 146.9p after UBS upgraded the stock to buy.
