FTSE closes at 5150.6

Updated 17.43 Wed Jul 16 2008

Keywords: shares, economy, US, traders, market, FTSE

The FTSE 100 index closed 21.3 points down at 5150.6 after another volatile session.

The market had been 100 points lower earlier in the day but falling oil prices and a strong start on Wall Street helped limit losses.

The market had been 100 points lower earlier in the day lower oil prices and a strong start on Wall Street helped limit losses

US Federal Reserve chief Ben Bernanke settled nerves by saying mortgage giants Fannie Mae and Freddie Mac were "in no danger of failing".

Some banking stocks made remarkable recoveries as sentiment shifted late in the session.

Barclays pulled back a ten-year low to close 6.25p higher at 266.75p while Royal Bank of Scotland and Halifax Bank of Scotland reined in most of their losses, down 2.3p to 165p and 5.5p to 254.5p respectively.

But there was little respite for US-facing building supplies firm Wolseley, which told shareholders it would not pay a full-year dividend in September.

Battered by a rapid downturn in UK trading conditions as well as its US woes, Wolseley shares slipped 18p to 272.25p - more than 6 per cent.

Also on the back foot were mining stocks, with Rio Tinto and Xstrata among the fallers, down 195p to 5025p and 182p to 3538p respectively.

Oil prices slipping to just above $132 a barrel was good for travel firms. British Airways added 14.5p to 225.25p just a day after its chairman told shareholders breaking even would be a good performance this year.

Thomson owner TUI Travel also cheered 12p to 188.6p, but the oil falls were less healthy for BP, which slipped 14.75p to 509.5p, nearly 3 per cent. Prospector Tullow Oil was 32.5p lower at 788p.

Winners: Admiral up 76.5p at 783p, Icap ahead 36.75p at 454.5p, British Airways up 14.5p at 225.25p and TUI Travel up 12p to 188.6p.

Losers: Wolseley down 18p at 272.25p, Xstrata off 182p at 3538p, Antofagasta down 24.5p at 522.5p and Tullow Oil off 32.5p at 788p.