A predictable bout of profit-taking, the absence of any of the much rumoured takeover activity and growing nervousness ahead of today's payroll report from the US, saw the FT-SE 100 index temporarily drop back below 4,000 yesterday.

But a late flurry of support, from local and overseas institutions, helped the index rally sufficiently to close exactly at 4,000 - down 15.1 on the session.

The other leading indices were hardly changed, however, clearly indicating that any selling had been concentrated in the leaders.

Gilts played a significant part in the market's slightly unhappy tone during the afternoon, as did a weak opening by Wall Street, where the Dow Jones Industrial Average was down around 20 points shortly after the opening. However, the Dow began to catch up later in the session.

Activity in the leaders was concentrated in the two utilities affected by regulatory moves, British Gas and National Grid, which between them accounted for almost 6 per cent of overall market business. Gas shares were the worst performer in the leaders after the company elected to seek a Monopolies and Mergers Commission reference after consideration of the Ofgas price cutting proposals.

Turnover at 6 p.m. was 776.4 million shares, while the surge in trading following Footsie's move through 4,000 saw the value of business on Wednesday reach £2.1 billion.