Footsie makes strong start but loses gains to close low

A BRIGHT start petered out yesterday as the FTSE 100 Index lost its early gains and closed down for the eighth successive session.

Key bank and drug stocks were again losing ground while Cable & Wireless tumbled a further 14%, heralding its departure from the top flight.

C&W is almost certain to be booted out of the Footsie in today's quarterly reshuffle after its dramatic fall from grace this week. And despite early gains on Wall Street, the disappointing show by the City’s heavyweights meant the Footsie closed down 8.9 points at 3925.0.