FTSE 100 ends day lower

Oct 22 2008 by Iain Laing, The Journal

THE FTSE 100 closed 1.2% lower yesterday, reversing earlier gains to echo losses on Wall Street on Monday as investors bracing for global recession discarded battered UK banks and oil majors.

The FTSE 100 index ended down 52.9 points at 4,229.7 as shares fell across Europe, and having earlier risen to a day’s high of 4,347.7 points. The blue-chip index closed 219.66 points higher at 4,282.67 on Monday.

The FTSE has lost 34.5% of its value so far this year.

However insurers made strong advances as blue chip stocks regained their poise in a less volatile session.

But London’s financials were faring better in more stable trading. HBOS joined Legal & General, Pru and RSA Insurance on the leaders board.

Meanwhile an easing back in oil prices, to below 72 US dollars a barrel, provided a lift for fuel dependent stocks. Also in the FTSE 250, housebuilders were likewise back in favour after heavy falls the day before.

Wall Street pulled back yesterday as investors worried that companies’ forecasts signal little easing of the weakness gripping the economy. After logging sharp gains in the previous session, the Dow Jones industrial average fell 2.5 %, down 231.77 to 9,033.66.