London close: Footsie slides nearly 4%
London's top stocks slumped nearly 4% as concerns about the US subprime mortgage sector raised credit worries.
Financials spearhead the fallers with Schroders down and Man Group pressurised by rumours that it will delay the public offering of one of its hedge funds.
Life insurers are also residing in the red with Resolution and Standard Chartered posting losses, while bank Barclays fell on speculation that it is to withdraw from the takeover battle for Dutch bank ABN Amro.
South African insurer Old Mutual saw operating profit on an EEV basis 12% lower at £782m, due to exchange rates and synergy and infrastructural costs. The figure was below expectations.
Copper producers Antofagasta and Kazahmys continue to be very weak, reflecting the softening of copper prices. Other miners followed suit with Lonmin, BHP Billiton and Rio Tinto all among the worst performers.
Bank HBOS has appointed former Aon UK chief operating officer Philip Gore-Randall as its new chief operating officer. He will be responsible for IT and cost efficiencies. Mike Ellis, who resigned as finance director in 2005, is returning in the same role.
In broker news, Collins Stewart believes the decline in British Airway's shares has now been overdone. The broker believes a fair value for the shares is 580p and at their current sub-400p price level the company is a very attractive bid target.
There are only a handful of risers today with food group Associated British Foods and Carnival posting slight gains.
African focused oil and gas company BowLeven has abandoned its IF-1 well offshore Cameroon but said the overall acreage may still hold gas. "While further drilling will be required to firm up the reserves, the result of this well certainly enhances the likely commerciality of the acreage," said chief executive Kevin Hart.
Multi-utility firm Telecom Plus said trading for the year to date has been positive and it remains confident of reporting satisfactory results for the full year.
InTechnology, the voice and data Managed Services provider, said trading is in line with expectations after the successful UK launch of its "Push To Talk" technology in July.
Shares in pharmaceutical services group Premier Research surged ahead as directors responded to recent sharp falls in its share price by giving assurances that it is confident of hitting full year targets.
Shares in Australia-based oil and gas explorer Anzon Energy soared after the AIM-quoted company's 53.1% owned subsidiary Anzon Australia sold a 10% stake in the Basker Manta Gummy offshore oilfield for A$123m. Anzon Australia retains a 40% stake in the project.
FTSE 100 - Risers
Carnival Corporation (CCL) 2,244.00p +0.54%
Associated British Foods (ABF) 844.00p +0.30%
Tate & Lyle (TATE) 549.00p +0.18%
Kingfisher (KGF) 215.00p +0.12%
Hanson (HNS) 1,089.00p -0.18%
Reckitt Benckiser (RB.) 2,755.00p -0.68%
Centrica (CNA) 335.00p -1.03%
Drax Group (DRX) 621.00p -1.04%
Standard Life (SL.) 315.25p -1.10%
Rolls-Royce Group (RR.) 493.50p -1.20%
FTSE 100 - Fallers
Northern Rock (NRK) 713.50p -9.57%
Man Group (EMG) 479.25p -9.06%
International Power (IPR) 405.00p -7.85%
Lonmin (LMI) 3,036.00p -7.21%
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Resolution (RSL) 626.00p -6.71%
BHP Billiton (BLT) 1,261.00p -6.66%
Schroders Nv (SDRC) 1,042.00p -6.38%
Barclays (BARC) 638.00p -6.38%
British Airways (BAY) 377.75p -6.15%
Rio Tinto (RIO) 3,008.00p -6.15%
FTSE 250 - Risers
Avis Europe (AVE) 51.00p +15.91%
JKX Oil & Gas (JKX) 360.00p +13.48%
WH Smith (SMWH) 378.50p +4.41%
Hunting (HTG) 707.50p +3.21%
Shanks Group (SKS) 227.00p +2.25%
Autonomy Corporation (AU.) 840.00p +2.25%
CSR (CSR) 709.00p +1.94%
Hikma Pharmaceuticals (HIK) 418.00p +1.89%
Forth Ports (FPT) 1,945.00p +1.83%
Renishaw (RSW) 714.50p +1.71%
FTSE 250 - Fallers
Rathbone Brothers (RAT) 1,157.00p -12.02%
Henderson Group (HGI) 139.25p -9.43%
Beazley Group (BEZ) 150.00p -7.98%
Findel (FDL) 680.00p -7.92%
Michael Page International (MPI) 478.50p -7.89%
Investec (INVP) 523.00p -7.84%
Paragon Group Of Companies (PAG) 399.25p -7.74%
Aberdeen Asset Management (ADN) 173.50p -7.71%
Venture Production (VPC) 727.50p -7.62%
Debenhams (DEB) 122.00p -7.58%
