FTSE slump gives investors reminder of fragile market

JUST one FTSE 100 Index stock finished in positive territory yesterday as investors received a stark reminder about the market’s fragile state.

Analysts put the day's 4% slump down to a bout of profit-taking and nerves after an edgy couple of sessions in the US. By the close, the Footsie was off 175.7 points at 4274.0 as a host of sectors took a beating to send the index tumbling back from a seven-week high. Among the heaviest fallers were energy giants BP and Shell after losing yesterday's gains as the price of oil eased. BP and Shell were both trading down, off 31p at 512p and 20p at 440p respectively, over fears OPEC would relax supply curbs next month.

A gloomy Wall Street close on Tuesday set London off on the wrong foot and that mood continued when the Dow Jones Industrial Average and the Nasdaq Composite again opened lower yesterday afternoon. A range of poor figures from the US tech sector and weak consumer sentiment have been among the factors affecting Wall Street.