FTSE hits five-year low

Nov 21 2008

generic ftse image, man looking at screen

The FTSE 100 Index ended a turbulent week at a five-year low today after nervous investors reversed earlier gains.

A weak opening on Wall Street put paid to hopes of a positive session in London, as the Footsie surrendered an initial 70 point start to close more than 2.4% lower, or 94 points, at 3781.

The decline came despite a positive session for mining stocks and a number of the beleaguered banks.

The Footsie started the week at 4233, but heavy losses in four of the five sessions have caused alarm in the City. Analysts are braced for further falls next week as the top flight index looks set to test the 2003 bear market lows of around 3300.

Pharmaceutical stocks took their turn at the top of the fallers board, led by AstraZeneca after a drop of 9% or 214p at 2245p. GlaxoSmithKline was down 80p at 1072p, while Shire fell 58.5p to 838p, a drop of 7%.

Market heavyweight Vodafone also put the market under pressure after shares dropped 9.4p to 112.5p.

One of the few positives came from the mining sector after a pause in the recent fall in metal prices helped a number of stocks reverse recent heavy losses.

Among risers in the volatile sector, Antofagasta cheered 10% or 35.75p to 354.75p and Anglo American added 78p to 1132p.

Banks spent a rare session away from the top of the fallers board after investors speculated that Barclays will gain enough support for its £7 billion fundraising plan at a special meeting of shareholders on Monday.

Barclays added 4% or 5.5p to 133.2p after the heavyweight stock slumped to its lowest level since 1994 earlier in the week. Royal Bank of Scotland, which received backing for its bail-out scheme yesterday, was up 1.4p at 47.4p.