Footsie falls back from the 6,000 barrier

Blue-chip stocks suffered a late fall as the FTSE-100 Index fell back from the all-important 6,000 barrier.

The Footsie closed up 20.5 points at 5,904.5 after losing most of the gains from earlier in the day.

Analysts believe the fall has much to do with traders locking away profits after a rise of more than 80 points earlier in the session.

That early lift came courtesy of the US, where the Dow Jones Industrial Average broke through the 11,000 barrier for the first time in eight months.

The progress continued this afternoon as both the Dow Jones and the tech-laden Nasdaq benefited from a feeling that recent interest rate cuts in the US might be enough to rejuvenate the flagging economy.

But the positive mood was not reflected in London, where stocks drifted lower during a low-key afternoon.

Matters were not helped by strong retail sales figures from the Office for National Statistics.

While the figures provided evidence of a resilient economy, the City will be concerned the numbers reduce the chance of further interest rate cuts in the UK.

Railtrack has been benefiting from the announcement that former Smith & Nephew chief executive John Robinson will become its new chairman. Shares in the beleaguered rail infrastructure company lifted nearly 2%, or 8p, at 490p.

The biggest Footsie risers were Sage Group, up 17p at 281p, Hanson ahead 26p at 512p, Invensys up 6p at 136p, and Arm Holdings, ahead 14p at 361p. The biggest fallers were GKN, down 48½p at 751½p, Compass Group off 30½p at 505p, Diageo down 31p at 761p, and BAE Systems off 13p at 337p.