FTSE 100 Index plunges for the ninth day in a row

The FTSE 100 Index plunged to its lowest level since December 1995 yesterday after the worst ever run in its history.

Continued uncertainty about possible war in Iraq and corporate profitability saw the Footsie close down 55.8 points at 3622.2.

The drop means the index has now fallen for nine days in a row, the first time this has ever happened.

A host of heavyweight shares weighed on the market with banks, telecoms and oil stocks all heading lower.

Analysts said doubts over Iraq meant fund managers were holding back from pumping new money into market.

Martin Dobson, head trader at NatWest Stockbrokers, said he feared the Footsie could now drift to 3500: “There’s nothing to drive the market up, nothing apart from the speculation surrounding Safeway. Everyone’s waiting for a decision on Iraq, one way or the other, and then we will have something to build on.”

Analysts had hoped for a bright start to trading on Wall Street after a lacklustre morning in the City, but the Dow Jones Industrial Average fell after gaining 60 points early and struggled to hold 8300.

The biggest Footsie risers were Prudential, up 12.5p at 380p, Man, up 22p at 830p, Hilton, ahead 2p at 144.75p, and Xstrata, up 6.5p at 556p.

The heaviest fallers were Dixons, down 6.5p at 106.75p, Abbey National, down 25.5p at 440p, Alliance UniChem, off 24.25p at 421.75p, and Hays, off 4.25p at 79.75p.