FTSE closes at 4163.6
Updated on 04 December 2008
The FTSE 100 Index closed down 6.4 points at 4163.6 after the Bank of England cut interest rates.
Interest rates are now at their lowest level since 1951, but the 1 per cent cut came as no surprise as the Bank seeks to stave off a deep recession.
Financial firms dominated the London risers board. Legal & General and Friends Provident set the pace with gains of more than 6 per cent, up 4.2p at 69.8p and 4.3p at 72.3p respectively, while Aviva added 16p to 380p.
But miners were under pressure after Numis Securities downgraded recommendations across the sector. Fallers included Rio Tinto, which shed 61p to 1087p, and Xstrata after a drop of 61p to 629.5p - an 8 per cent fall.
Housebuilders enjoyed a boost from the rate cut after mortgage lender HBOS pledged to pass on the rate cut to its tracker deal borrowers. But the lender later said it would not pass the cut on in full to standard variable rate borrowers, offering a 0.25 per cent reduction instead.
Supermarket Morrisons fell 5.75p to 244.75p and Marks & Spencer lost earlier gains to stand 1.75p lower at 220.5p on the day it held its second 20 per cent off sale.
Other stocks fared better amid hopes the latest rate cut will spur a pre-Christmas rush in business. Next rose 45p to 1058p and B&Q owner Kingfisher gained 3.7p to 121.7p.
Winners: Eurasian Natural Resources up 21.5p at 260.5p, HBOS ahead 6.4p at 93.5p, Fresnillo up 9.7p at 144.7p and Legal & General up 4.2p at 69.8p.
Losers: 3i Group down 34.75p at 356.5p, Xstrata off 61p at 629.5p, Stagecoach down 10.1p at 133.1p and Hammerson down 34p at 486p.
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