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FTSE closes at 4005.7

Updated on 19 November 2008

Source ITN

The FTSE 100 Index has closed down 202.9 points at 4005.7 as banking and mining stocks fell over fears of the scale of the global downturn.

The London market briefly dipped below the 4,000 mark for the first time in a month as heavy falls on Wall Street also hit sentiment in London.

The mining sector was badly hit by recession fears, with Kazakhmys down 22 per cent or 42p to 193p, the FTSE's leading casualty. Vedanta Resources followed close behind, down 76.5p at 438p.

Banks were also suffering after JP Morgan Securities cut share price targets on several UK banks, including Barclays from 210p to 150p.

Barclays was already under pressure after attempts to smooth the passage for its Middle Eastern bail-out plan failed to appease shareholder lobby groups. Shares were down 19.9p at 129.6p during another turbulent session for the sector.

HSBC fell 64.5p to 641.5p, but HBOS gained 1.3p to 64.3p on the day Lloyds TSB shareholders backed the takeover of the ailing bank. Lloyds however was also on the back foot, down 12.7p to 118.5p.

Elsewhere, Marks & Spencer shares fell 6 per cent after it emerged the retailer planned to hold a one-day 20 per cent off sale on Thursday.

Further pressure on the stock, which declined 11.25p to 200p, came after Seymour Pierce cut its full-year profits forecast on M&S.

Citigroup was another City firm to express concern over M&S, as part of a wider downgrade of the sector. Currys owner DSG International was the biggest casualty from Citi's review as shares tumbled 45 per cent or 5p to 11p after touching record lows below 10p earlier.

Other fallers in the retail sector included Mothercare, which dropped 21.5p to 268.5p ahead of interim results on Thursday. Sports World owner Sports Direct International slid 4.75p to 32.25p and Debenhams fell 4.5p to 23.75p.

The biggest top flight gain of the session came from credit checking firm Experian - up 7 per cent or 22.75p to 329.25p - after it posted first half results slightly ahead of market expectations.

Winners: Experian up 22.75p at 329.25p, Icap ahead 14.25p at 244.25p, Man Group up 8.5p at 216.25p and BT ahead 3.8p at 125.2p.

Losers: Kazakhmys off 42p at 193p, Vedanta Resources off 76.5p at 438p, Barclays down 19.9p at 129.9p and Lonmin which finished down 108.5p at 724.5p.

© Independent Television News Limited 2008. All rights reserved.

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