FTSE falls below 4,000
The FTSE 100 Index retreated below the 4,000 level today as stocks failed to shake off pessimism surrounding global economic stimulus efforts.
London’s leading share index had steadied in early trading, but was dragged lower as banks and insurers suffered more losses, down 52.3 points at 3981.9 in mid-morning trading.
The FTSE plunged more than 100 points yesterday, while markets in the US and Asia suffered hefty losses overnight on doubts over America’s economic rescue package and whether a severe global recession could be halted.
Battered UK blue chip Royal Bank of Scotland was today’s biggest faller after a report said it would need to stump up £8bn (€9bn) to take part in the state-backed insurance scheme designed to cap losses on toxic assets.
RBS shares plunged 7%, or 1.5p to 19.2p.
Insurer Legal & General fell back into the red today – down 3.4p at 41.9p - despite yesterday’s assurances over its capital position.
It also emerged that the stock has been the target of short-selling in recent days.
Other insurers also fell today, with Aviva off 8.75p at 298.25p and Prudential down 14p at 265.5p ahead of this Friday’s full-year new business figures.
But battered Lloyds Banking Group made tentative moves to claw back recent losses, ahead 3%, or 1.5p at 53p.
HSBC was also up, by 8.25p to 502.75p.
A number of stocks meanwhile turned ex-dividend today, which means investors will not be eligible to receive the next dividend payout.
This hit oil giant BP, down 18.75p at 473.75p, and mining group Rio Tinto, down 38p at 1859p.
In the second tier, Sports Direct International surrendered early gains of as much as 6% after a reassuring update. Shares later slipped 0.75p to 58p.
Elsewhere, confectionery chain Thorntons dropped 4% – down 2p at 49.75p - following a 39% slump in half-year profits.
