FTSE 100 down over 3%

Friday 20th February 2009

The FTSE 100 dropped 3.22 per cent today – to end the week below the 4,000 mark.

The index closed at 3,889.06 – a drop of 129.31 points – the lowest since November last year.

London's losses were further depressed when the Dow opened down – with losses for banks amid speculation of nationalisation for Citi or Bank of America.

At 12:42 EST (17:74 GMT) the New York index was down 1.79 per cent to 7,332.46 – down to a six-year low.

Over the week the FTSE 100 lost 7.17 per cent.

On Friday the miners led the gains – with Anglo American dropping 16.91 per cent after announcing it was scrapping its 2008 dividend to build up its cash base, as profits fell one per cent and 19,000 jobs were to cut.

Xstrata was down 10.56 per cent, Kazakhmys slipped 9.75 per cent and Rio Tinto dropped 9.50 per cent.

Royal Bank of Scotland dropped 11.47 per cent.

Leading the gains was Prudential – after the insurer reported a five per cent rise in sales to £3 billion.

Inmarsat gained 2.30 per cent and Sage Group rose 2.09 per cent.

London's losses were further depressed when the Dow open down. At 12:42 EST (17:42 GMT) the New York index was down 1.79 per cent to 7,332.46 – down to a six-year low.

Anthony Grech, market strategist at IG Index, said: "The FTSE has spent the day firmly on the back foot after plummeting to around the 3,920 mark on opening.

"Singling out a particularly hard-hit sector is not easy, and most stocks have been in the red all day; nevertheless, in the UK, miners bore the brunt of the wide-scale sell off."

"And across the Atlantic, the Dow hit a six-year low today with financial stocks suffering the worst losses. By mid-afternoon in London, Citigroup and Bank of America were showing percentage drops firmly in the double-digits."

He added the mood on the markets was "reminiscent of last year’s low points, with investors searching in vain for reasons not to hit the sell button.

"Confidence levels aren’t being helped by the barrage of pessimism being whipped up at the prospect of a big-name nationalisation in the US financial sector. It’s going to take a bold move by the new US administration to stop this resurgent haemorrhaging of world markets – and with bailouts being interpreted as signs of economic weakness there are no quick fixes."

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