Bank merger talks fail to sustain early gains on FTSE

EARLY gains for the FTSE 100 Index proved too good to be true for investors today after confidence evaporated as the session wore on.

Stocks had been in positive territory for much of the session after Marks & Spencer cheered the retail sector with better-than-hoped-for figures.

Banking stocks were also lifted for a while by speculation that Abbey National remained a consolidation target despite its rejection of a merger approach from Bank of Ireland.