FTSE:5,846.95 (–59.48) Mid-250:11,766.56 (–76.63) Small Cap:3,267.58 (–14.17) FALLS AMONG commodity issues sapped the strength of Britain's top share index yesterday, as worries over global growth clouded the demand outlook for metals and oils.

At the close, the FTSE 100 index was down 59.48 points, or 1.0 per cent at 5,846.95, reversing all of the previous session’s rally.

“The FTSE is struggling to make any headway at the moment as I think traders are so wary of this market whip-sawing around,” said David Morrison, market strategist at GFT Global.

Banks were volatile as concerns over their exposure to the euro zone debt crisis continued.

“It’s really very nervous out there, with the euro zone debt concerns bubbling away, undermining anything that could be considered positive,” Mr Morrison added.

British banks were cautious ahead of the publication today of the results of the European Banking Authority stress tests on 91 banks from across the European Union.

“We expect all of the UK banks to pass the test, but would question its relevance given that the risk of a European sovereign default is not being captured,” Shore Capital analyst Gary Greenwood said.

Lloyds Banking, however, bucked the dull sector trend, adding 3.2 per cent, supported by an upgrade in rating by Goldman Sachs to “buy”.

Precious metals miner Fresnillo was the biggest FTSE 100 gainer, adding 4.9 per cent after it posted record silver and gold production in the second quarter at a time when the gold price is at a life-time high.

Rio Tinto, down 1.2 per cent, failed to be helped by an in-line production output, with the global miner on track to hit its 2011 iron ore production target.

Oil services firm Petrofac was the top FTSE 100 faller, losing 3.8 per cent as Barclays Capital downgraded its rating to “underweight”.

Peer Amec, down 1.1 per cent, also suffered the same cut at Barclays Capital’s hands.

Broker comment blighted Man as well, with the the world’s largest hedge fund manager losing 2.1 per cent as HSBC cut its recommendation to “underweight”.

On the upside, Associated British Foods added 2.3 per cent after the food producer to clothing retail group said it is on track to meet its full-year earnings targets. – (Bloomberg)