Subdued week as Footsie falls back from key barrier

THE FTSE 100 Index fell back from the key 4200 barrier yesterday after hovering close to a new two-month high for most of the day.

The momentum built up during the past week faded away as investors sold out of heavyweight tobacco, oil and telecom stocks.

A quiet start to trading on Wall Street, where the Dow Jones Industrial Average eased eight points early on, added to the subdued mood.

And after looking set to close in positive territory, the Footsie ended the day off 14.8 points at 4175.2 albeit up 2% on seven days ago.

Peter Cogliatti, trader at Williams de Broe, said a firm push above 4200 could see the index rise towards the 4400 mark.

But he added: "It looks as if people have had enough, we looked at 4200 and backed away. We need an excuse to push ahead again."

Oil giants BP and Shell were weaker after a slip in the price of crude with Shell down 6.25p at 407p and BP off 8p at 404p.

Cigarette giants Gallaher and Imperial Tobacco were both down after rating downgrades from investment bank Goldman Sachs.

Gallaher shed nearly 4%, or 24.5p to 600p, while Imperial Tobacco, due to report full-year results on Monday, dipped 26p to 972p.

Telecoms also fell back after strong gains this week with BT down 5.75p at 212.75p and mobile phone group mmO2 easing 0.25p at 54.75p.