FTSE loses previous gains

Shares in London were back in negative territory today as the markets failed to build on strong gains in the previous session.

The FTSE 100 Index drifted back below the 5600 mark as uncertainty returned to the Square Mile and investors banked quick profits following yesterday’s rise.

Aggressive selling sent the Footsie down 98.6 points to 5580.1 by lunchtime with mining, oil and banking stocks among those under pressure.

The fall dashed hopes that yesterday’s gains of almost 150 points signalled the end of the recent turmoil that has seen the Footsie dive from a five-year high of 6132 in a matter of weeks.

Mining stocks weighed heavily on the market today with Kazakhyms off 8% to 1000p and Xstrata down 4% to 1857p.

Oil stocks were also feeling the pressure as BP and Royal Dutch Shell eased 3% - 18p to 617p and 2 % or 40p to 1797p respectively due to fears of easing crude prices.

Banks were on the back foot with Standard Chartered down 42p to 1276p. It was followed down by Lloyds TSB – 9p lower at 491.5p – HBOS, off 11p to 902.5p, and HSBC, which slipped 9p to 920.5p.

B&Q owner Kingfisher gave up early gains to slide 3% lower or 7.5p to 224p as investors digested a 70% slump in UK profits as the home improvement market remained tough.

And GUS edged lower as its profits came in just ahead of market expectations.

Shares dropped 14p to 931p as the company also outlined plans to demerge its retail arm, which includes Argos and Homebase, from credit-checking firm Experian in October.

Scottish Power was at the top of the riser’s board, up 1% or 5.5p to 548.5p after it revealed a 47% rise in annual profits to £675m (€988.31m). It also warned that further rises in household gas and electricity bills were unavoidable as it grappled with the higher cost of wholesale gas.

Centrica, which owns Scottish Power rival British Gas, was also buoyed by the news as its shares ticked 2.25p higher to 270.25p.

Outside the top flight, shares in the UK’s biggest commercial radio broadcaster GCap Media rose despite the firm saying its decision to slash the number of adverts on flagship station Capital Radio contributed to a sharp fall in profits.

Shares lifted 4% to 248.5p after chief executive Ralph Bernard said he was comfortable with revenue forecasts for the current year.