FTSE closes at 6034.7

The FTSE 100 Index has closed 18.3 points down at 6034.7.

The Royal Bank of Scotland's £12 billion rights issue triggered a tough session for bank shares.

The bank's funding move - at a higher discount than expected by markets - sent RBS shares nearly 4 per cent lower or down 14.5p to 358p.

Among the other bank fallers were HBOS, which slipped 20p to 520p, and Barclays shed 17.5p to 461p, both recording falls of almost 4 per cent.

The heavyweight mining sector helped prop up the top flight, with Eurasian Natural Resources at the top of the risers board with a gain of almost 9 per cent or 105p to 1311p.

Kazakhmys was 62p higher at 1694p as analysts speculated again over consolidation prospects for the mining sector.

Oil prices also reached a new record of $118 a barrel and analysts at Citigroup predict the commodity will remain at high levels in the short term due to no fall-off in demand.

This helped BP move 2.5p higher to 576p, while exploration firms Cairn Energy and Tullow Oil rose 35p to 3050p and 11p to 732p respectively.

Winners: Eurasian Natural Resources up 105p at 1311p, Kazakhmys ahead 62p at 1694p, Antofagasta up 28p at 830p and Rio Tinto up 148p at 6385p.

Losers: Persimmon down 37p at 662p, Home Retail Group off 10.75p at 245.75p, Thomas Cook down 11.75p at 284p and Carnival down 83p at 2010p.

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