FTSE closes at 5261.6

Updated 17.14 Fri Jul 11 2008
Keywords: economy, shares, US, traders, market, FTSE

The FTSE 100 share index has closed 145.2 points down to 5261.6 - the lowest since October 2005.

Sky-high oil prices and fears for US mortgage giants Fannie Mae and Freddie Mac sent shockwaves through the City and prompted a 2.7 per cent dip.

Sky-high oil prices and fears for US mortgage giants Fannie Mae and Freddie Mac sent shockwaves through the City and prompted a 2.7 per cent dip

Oil and mining stocks dominated the small clutch of firms keeping their head above water, as oil broke through the $147 a barrel barrier thanks to the tensions with oil-rich Iran over its missile testing programme.

Oil and gas explorer BG Group added 1p to 1137p as a result, with Royal Dutch Shell 10p better at 1919p.

Mining stocks also made progress as investors shifted their money into safe havens. Eurasian Natural Resources led the sector's advances and the Footsie risers' board, gaining 90p to 1137p, nearly 9 per cent.

Losses swept the retail sector, with news of a strong sales performance from department chain John Lewis failing to offer support.

Rival Marks & Spencer was among the sector's worst blue-chip performers, dropping 13p to 227.25p. It was closely followed by B&Q owner Kingfisher, off 7.2p at 91.8p, and Next, down 43.5p at 852p.

Other prominent fallers included Royal Bank of Scotland, which lost 17.2p to 182.7p after Zurich pulled out of the running to buy its insurance business, which includes brands such as Direct Line.

RBS rivals Barclays and Lloyds TSB joined the slide, losing 16.75p to 267.75p and 17p to 275.5p respectively.

Transport groups also suffered thanks to the oil price surge. British Airways slumped 11.65p to 199.1p, and FirstGroup 30p to 530.5p.

In the second tier, housebuilders maintained their progress, with Taylor Wimpey 2.75p ahead at 37.75p and Barratt Developments was 4.25p better at 71.25p.

Bradford & Bingley shares were up 2.25p at 47.5p.

Winners: Eurasian Natural Resources up 90p to 1137p, Cairn Energy up 102p to 2844p, Carphone Warehouse up 6.45p to 203.25p and Tullow Oil, which ended the day 24.5p up at 866.5p.

Losers: Enterprise Inns down 28.5p to 302.5p, RBS down 17.2p to 182.7p, Standard Chartered down 114p to 1341p and Kingfisher which closed 7.2p to 91.8p.

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