Tate & Lyle drags FTSE down

Tate & Lyle caused its shares to tumble today after it warned its sugar division would post a small first-half loss.

The Silver Spoon maker dropped by more than 30%, or 170.5p to 387p, as analysts slashed their forecasts on the news that a weak US dollar and higher corn prices would also impact earnings.

The loss helped drag the FTSE 100 Index 34.5 points lower to 6451.9 by mid-morning after figures revealing a sharp drop in UK consumer confidence knocked investor sentiment.

According to the latest GfK NOP survey, consumer confidence slipped to its lowest level since December 2005 as a result of the crisis at mortgage lender Northern Rock.

The troubled bank was also one of the session’s top fallers with a loss of almost 5%, or 8.7p to 184.8p, after reports suggested the group borrowed an additional £5 billion from the Bank of England, reviving credit concerns.

The news dragged down fellow banks HBOS, off 12p at 904p, and Barclays, which slipped 7p to 596.5p.

Miners were also on the back foot, with Antofagasta down 29p at 761.5p, Vedanta Resources falling 47p to 2010p and Kazakhmys off 25p at 1430p after broker downgrades from UBS.

However platinum producer Lonmin swung in the opposite direction to top the risers’ board with a gain of 112p to 3510p.

Recent FTSE 100 entrant Tullow Oil made strong advances, up 11p at 596p after the group reportedly said it may bid for exploration blocks in India.

British Airways was also still flying high after yesterday’s news that it placed its largest order for new planes for nearly 10 years. Shares rose 3.25p to 387.5p.

Elsewhere, sports retailer JJB Sports saw a 5% lift, up 7.75p to 153.25p as it unveiled plans to halt the decline in earnings following a 58% drop in interim pre-tax profits.