FTSE closes at 6007.6

Updated 17.17 Mon Jun 02 2008

Keywords: FTSE, London, markets

The FTSE 100 Index has closed 45.9 points lower at 6007.6.

It was a turbulent start to the week as bank shares came under pressure following a profits warning from lender Bradford & Bingley.

Winners: Tullow Oil up 22.5p to 912.5p, Compass ahead 9p at 384p, British Energy up 14p to 748p and Rio Tinto ahead 115p at 6170p

The buy-to-let specialist's shares fell 24 per cent as a gloomy trading update was accompanied by a restructuring of its fundraising plans and the sale of a 23 per cent stake to a private equity buyer.

The FTSE 250 Index firm fell 21.25p to 67p - although that was still above the amended rights issue price of 55p a share, after the group restructured its cash call to shareholders.

The firm - which reached a low of 60p at one point - now plans to raise £258 million from the rights issue and £179 million from the sale to US buyout firm Texas Pacific.

HBOS was the leading Footsie faller on B&B's news, nursing a 14 per cent loss before the lender eased investor concerns by stating that its own rights issue remained on track and that current trading was satisfactory.

Shares were still 10 per cent or 40p lower at 360p, although RBS shares fared better, falling just 2.5p to 226p after it stressed UK buy-to-let mortgages only represented 1 per cent of its UK loan portfolio.

But Alliance & Leicester also featured at the top of the fallers board as analysts worried that the bank could face the same funding difficulties as B&B. Shares were more than 5 per cent lower, off 22.25p at 403p.

The leading FTSE riser was oil and gas firm Tullow Oil, which gained 2 per cent or 22.5p to 912.5p after positive comments on the sector from Morgan Stanley.

Nuclear power firm and bid target British Energy added 14p to 748p after analysts speculated over possible interest from Spanish company Iberdrola.

Winners: Tullow Oil up 22.5p to 912.5p, Compass ahead 9p at 384p, British Energy up 14p to 748p and Rio Tinto ahead 115p at 6170p.

Losers: HBOS down 40p to 360p, London Stock Exchange off 68.5p at 958.5p, Alliance & Leicester down 22.25p to 403p and FirstGroup off 21.5p at 508p.