FTSE closes at 6053

The London market closed down 3.5 points at 6053 after the £50 billion Bank of England rescue plan failed to give blue chips a boost.

The BoE's plan to boost lending by allowing banks to swap mortgage debt for government bonds had given an early boost to stocks.

But most of the major players in the UK banking sector closed in negative territory after a more difficult afternoon session.

Banks littered the fallers board as confirmation of a potential rights issue at Royal Bank of Scotland and more bank losses in the US offset any cheer from the BoE's credit crunch solution.

Further market losses were stemmed through gains for heavily-weighted mining and energy stock as oil and commodity prices remained high.

One of the FTSE's leading fallers was Royal Bank of Scotland, which fell 3 per cent, or 11.5p to 372.5p after confirming that it was considering asking shareholders for more cash in a rights issue later this week.

Other major banking stocks which fell included Barclays, off 17.5p to 478.5p and fellow high street banking giant Lloyds TSB, down 2 per cent, or 10.75p to 442.5p.

But miners weighed in with some gains amid higher metals prices. BHP Billiton added 54p to 1845p - a 3 per cent gain - and Antofagasta was 23p ahead at 802p, also up 3 per cent.

Housebuilders also advanced on the news potential help for the housing market from the BoE's plan, with Persimmon up 11.5p to 699p and FTSE 250 rival Taylor Wimpey adding 0.75p to 159.75p.

The leading FTSE riser was broadcaster ITV, up 6 per cent, or 3.9p to 67.9p on reports that German broadcaster RTL could be interested in buying BSkyB's controversial stake in the broadcaster.

The four biggest FTSE fallers were Hammerson down 54p at 1019p, British Airways off 9p at 214.75p, Barclays down 17.5p at 478.5p and British Land down 30.5p at 840p.

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