FTSE falls as Greece dithers
A lack of progress in talks between Greece and its creditors unsettled investors today as London's leading shares index failed to build on last week's gains.
The FTSE 100 Index was 8.9 points lower at 5892.2 as Friday's optimism, which was fuelled by positive jobs data in the US, faded amid fresh worries over Greece's ability to secure a new €130bn bailout deal.
A meeting between Greek Prime Minister Lucas Papademos and leaders of three parties backing his coalition to thrash out an agreement on crucial austerity measures has been pushed back to allow the Government to first attempt to reach a deal with creditors.
Although there were reports that Greece was close to making a break-through, the uncertainty subdued markets' progress.
Germany's Dax was flat, France's Cac-40 was down 0.7%, the Dow Jones Industrial Average was off 0.3% as the London market closed.
The pound was up against the euro and the dollar at 1.21 and 1.58 respectively.
Commodity stocks took a hit after the IMF warned the problems in Europe could cut resource-hungry China's growth rate this year in half from 8.2% to 4%.
Miner Vedanta Resources dropped 42p at 1317p and Antofagasta shed 36p to 1363p.
Meanwhile, commodity trader Glencore and mining giant Xstrata were on the back foot after talk last week that the companies may merge lifted the share price. Glencore fell 21.8p to 460.8p, while Xstrata dropped 21.5p to 1261.5p.
Financial stocks were dragging the wider market down as well, with Admiral slipping 39.5p to 998.5p and Old Mutual down 3.1p at 154.7p.
But some of Britain's banking shares held up with Lloyds Banking Group adding 0.9p at 35.3p, Royal Bank of Scotland edging 0.1p ahead to 28.8p.
Randgold Resources lifted 2% to the near the top of the risers' board after it reported a strong set of fourth-quarter results.
The gold miner was ahead 165p at 7565p after it said full-year profits more than trebled to $433.3m (€330.2m) thanks to increased production at its Ivory Coast and Mali projects.
Outside the top flight, SuperGroup, owner of the Superdry fashion label and retail network, shot to the top of the FTSE 250 Index after brokers Oriel Securities upgraded the stock from hold to buy. Shares were 6% or 41p higher at 703p.
Elsewhere, RM, a major supplier of whiteboards and technology for school classrooms, swung to a loss in the 14 months to November 31, triggering a 7% slide in its shares.
The group has gone through a restructuring to cope with the downturn, including selling overseas businesses in the US and Australia, and its Lego joint venture. Shares were down 5.8p at 75p.
The biggest Footsie risers were Cairn Energy up 56.1p at 344.9p, Lloyds ahead 0.9p at 35.3p, Randgold Resources up 165p at 7565p, and Vodafone ahead 2.8p at 177.9p.
The biggest Footsie fallers were Glencore down 21.8p at 460.8p, Admiral off 39.5p at 998.5p, Vedanta Resources down 42p at 1317p, and Antofagasta off 36p at 1363p.
