FTSE closes at 5240.7

Last Modified: 05 Sep 2008
Source: ITN

The London market slumped more than 2 per cent for the third session in a row as more miserable economic data sent shares diving on both sides of the Atlantic and cemented a miserable end to the week.

The FTSE plunged 121.4 points, or 2.3 per cent, to 5240.7, repeating performances seen on Wednesday and Thursday amid sustained fears for the world's major economies.

It took the index's plunge over the past three days to nearly 7 per cent, making it the worst weekly performance for more than six years. The Footsie was also back in bear market territory last visited in July.

There was no relief after figures showed the unemployment rate in the US rose to its highest level in nearly five years. Wall Street's Dow Jones Industrial Average fell more than 1 per cent, with markets in Germany and France also dropping more than 2 per cent.

In London, miners tracking lower metals prices and financial stocks hit by the economic misery weighed heavily on trading.

Barclays shed 12p to 317.25p and Royal Bank of Scotland fell 8p to 219.75p. HBOS was also 2 per cent down, or 7p, to 275.5p.

Other financial sector firms hit included life company Friends Provident, down 4.4p to 96.4p, and Norwich Union owner Aviva, which shed 20.25p to 494.75p.

Among the big miners on weaker ground was Ferrexpo, which has been a major casualty for the past two days. Shares were down 14p to 184p. Eurasian Natural Resources lost nearly 8 per cent, or 66.5p at 805.5p and Kazakhmys was off 86.5p at 975.5p.

Broadcaster ITV, which has been plagued by the gloomy advertising outlook amid the worsening economy, saw shares fall 1.3p to 42.2p. Supermarket chain Sainsbury's was also a big faller - down 11.5p at 336p - as takeover speculation surrounding the group began to fade.

The Footsie's four biggest risers were RSA Insurance, up 4.5p at 162.8p, Cadbury up 14p to 636p, Wood Group up 3.75p to 412.25p, and Unilever up 10p to 1391p.

The four biggest fallers were Johnson Matthey, down 134p to 1441p, Kazakhmys down 86.5p to 975.5p, Eurasian Natural Resources down 66.5p to 805.5p and Ferrexpo, which closed down 14p to 184p.

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