On a day when many of the tech/telecom stocks were being given another severe mauling, institutional investors were scrambling to get out of the areas still seen as increasingly vulnerable and into much safer areas.

The banks sector was very much in the forefront of the buyers' lists yesterday, partly because of its relative weakness but also because of the potential for more sector consolidation in coming months.

And Mr Brian Pitman, chairman of Lloyds TSB, one of the most successful of Europe's banks in recent years, added to the takeover excitement bubbling in the sector, pointing out yesterday that the pace of mergers and acquisition activity would continue in Europe.

Lloyds TSB shares moved back above the 700p level yesterday, finishing a net 24 higher at 703p, on turnover of 12.2 million shares, with some senior salesmen insisting that the bank would eventually end up winning control of Abbey National.

The latter is currently seeking an agreed takeover of Bank of Scotland, which itself lost out in the battle for control of NatWest Bank earlier this year.

There was no such buying frenzy in Abbey National shares, which moved in the opposite direction to close a net 18 off at £10.60.

The insurance areas of the market had to endure several bouts of turbulence. Prudential shares were among the FTSE 100's worst for much of the session, sliding 57p at worst, before stabilising and finishing the session a net 47 off at £10.40.

Marketmakers said the sell-off came in the wake of a good performance last week, which saw the shares race higher after analysts visited the company's Asian interests.

But the two composite insurers, CGNU and Royal & Sun Alliance both moved ahead after a choppy start to the day. The former closed 6 up at £10.73 and the latter was finally 6 up at 524p.

The substantial weakness sweeping across Wall Street and London markets inevitably affected the oil majors, traditionally two of the most liquid stocks in global markets and often seen as the ideal avenues for institutions to exit the market quickly and cleanly.

Dealers were surprised at the extent of the selling of BP Amoco and Shell, which took place against a positive performance by crude oil prices responding to a sudden cold snap in the US.