Rally comes to an end as heavyweights slip back

THE London market’s recent resurgence ground to a halt yesterday.

The FTSE 100 Index shed 112 points to end the day hanging on above the 4,000 barrier at 4006.9 as heavyweight stocks slipped back.

A swathe of heavyweights lost ground as investors cashed in on recent gains. The Footsie had climbed almost 10% since the start of the month but traders said the market needed a fresh impetus.

It was a bad day for pharmaceuticals, as Glaxo dropped 84p to £12.87 and AstraZeneca fell 31p to end the day at £22.94 ahead of its third-quarter results tomorrow morning.

Elsewhere, banks were hit hard with Barclays off or 32p to 435p, HSBC down 5.5p at 715p and Royal Bank of Scotland off 105p at £14.60. Insurers continued to suffer from concerns about the health of the sector with Royal & Sun Alliance losing 11%, or 12.75p to 103p.

And oil giants BP and Shell dipped as the threat of military strikes on Iraq eased on talk of renewed diplomatic efforts for a solution. BP fell 7.5p to 420p, while Shell dropped 11.25p to 400.5p its lowest close for over a week.

The highest risers were Canary Wharf, up 20p at 382p, Corus, up 2p at 44p, Severn Trent, ahead 19.5p at 659.5p and British Land, up 12.5p at 461.5p.

The heaviest fallers were Royal & Sun Alliance, down 12.75p at 103p, Amvescap, off 31p at 330.5p, Friends Provident, off 11p at 122.5p and Aviva, down 39.5p at 454.5p.