FTSE closes at 4208.6

Updated 17.29 Tue Nov 18 2008

Keywords: FTSE, London, stock market

The FTSE 100 Index clawed back initial losses to close up 76.4 points at 4208.6 after an upbeat opening on Wall Street.

Banking stocks and miners came under early pressure as economic fears continued to trouble a range of blue-chip stocks.

HBOS was the leading FTSE faller, dropping 11.5p to 63p, while Lloyds TSB shed 17.8p to 131.2p and Royal Bank of Scotland fell 3p to 41.7p

But some decent corporate news from personal computer giant Hewlett Packard lifted the mood in the US and the FTSE followed suit.

Despite the comeback, banks took a pounding as the UK Government set out stringent requirements for banks wishing to access its recapitalisation scheme.

HBOS was the leading FTSE faller, dropping 11.5p to 63p, while Lloyds TSB shed 17.8p to 131.2p and Royal Bank of Scotland fell 3p to 41.7p.

Barclays, which announced changes to its own fundraising plans in an attempt to head off a shareholder revolt, was down 4.6p at 149.5p.

Among the miners under pressure, Xstrata fell 76.5p to 800p and Lonmin shed 41p to 833p, although Antofagasta topped the risers' board after management predicted a recovery in copper prices during 2009. Shares rose 8 per cent, or 28.25p to 345p.

In a busy session for corporate updates, building supplies firm Wolseley recovered from a weak start to stand more than 7 per cent or 21.75p higher at 293p.

It reported a 45 per cent drop in first quarter profits, but analysts warmed to cost-savings plans, including the reduction of 2,000 jobs in the UK.

Winners: Antofagasta up 28.25p at 345p, Friends Provident ahead 6.1p at 77.1p, Aviva up 30p at 379.75p and Wolseley ahead 21.75p at 293p.

Losers: HBOS off 11.5p at 63p, Lloyds TSB off 17.8p at 131.2p, Xstrata down 76.5p at 800p and Icap which finished down 21.5p at 230p.