LONDON REPORT: FTSE: 4,049.37 (-114.24) Mid250: 5,685 (-116.29) Small Cap: 1,723.21 (-24.56): INSURERS PROVIDED a refuge yesterday as unexpectedly grim US jobs data sent the London market tumbling. The sector found support on news that Resolution, Clive Cowdery's consolidation vehicle, had successfully raised £600 million (€695 million) with a share placing.
"Potential firepower of £3 billion - £5billion puts most UK life operations within [Resolution's] range," said Deutsche Bank.
Legal General led the blue-chip risers with a 6 per cent gain to 73½p. But most of that was clocked up during an untidy closing auction. Standard Life underperformed the sector trend, closing unchanged at 262p.
That followed the Financial Services Authority announcing a crackdown on advice relating to self-invested personal pensions. Sipps account for about a quarter of Standard Life's sales.
The FTSE 100 ended down 2.7 per cent at 4,049.37, shedding 114.24 points. For the week the index was off 5.6 per cent.
Oil stocks were the main drag yesterday as the crude price held near a four-year low. BP slid 6.6 per cent to 478p and BG Group lost 7.4 per cent to 787½p, while Cairn Energy was off 7.1 per cent at £13.85. Soco International was down 6.4 per cent to £13.10 after oil price weakness led Citigroup to cut the stock from its "buy" list.
Miners plumbed four-year lows. Xstrata was down for a sixth straight day, losing 8.7 per cent to 575p. BHP Billiton fell 8 per cent to 975½p and Anglo American lost 5.9 per cent to £12.36.
Lonmin was the day's sharpest faller, down 16.2 per cent to 552p.
Meanwhile, retailers got a short-lived boost from the Bank of England's 1 per cent cut in interest rates yesterday. Sainsbury's clung to positive territory with a gain of 2.5p to 283.75p, but Next closed 66.5p lower at 991.5p as sentiment in the sector weakened.
One of the biggest gains in the top flight came from BT after regulator Ofcom announced plans to consult on proposals to increase the wholesale prices that BT's Openreach division can charge its rivals. Shares were 2.8p higher at 136.2p.
Property developer and urban regeneration firm Berkeley Group also made progress after finishing the six months to October 31st in a debt free position. Investors said Berkeley looked one of the best placed firms in the sector to withstand the downturn. - (Financial Times service, PA)
