Minor rally for FTSE

The London market remained grounded in negative territory today despite pulling back from the session's lows in afternoon trading.

The FTSE 100 Index closed down 68.6 points, or 1%, at 6459.3, with little in the way of corporate or economic news to help blue-chip stocks find momentum as persistent concerns over the US housing market and global credit crunch hit equity markets.

Retail stocks enjoyed a late rally with Argos and Homebase parent Home Retail Group cheering a near 2%, or 6.75p, rise to 380p ahead of its interim results on Wednesday.

Supermarket chain Morrisons was 4.75p higher at 297.25p, Next was up 8p at 1999p and Marks & Spencer was ahead 1.5p at 612p.

Financial Times to Penguin publisher Pearson was also on the front foot after it said advertising revenues had remained "resilient" despite the recent turbulence in financial markets. The stock was 11p higher at 776p.

Moving in the opposite direction, power station group British Energy slumped more than 8%, or 47p to 532p, after it said that four of its nuclear power reactors would remain off-line for longer than expected in order to carry out repairs to boiler units.

Meanwhile a broker downgrade from Citi impacted the mining sector, with Kazakhmys off 36p at 1455p, Xstrata down 173p to 3260p and Vedanta Resources 109p lower at 2054p.

Housebuilders remained out of favour after the latest survey from Ernst & Young revealed the market looked set to stall next year, although it added that a major recession appeared unlikely. Taylor Wimpey lost 11p to 240p, Barratt Developments was 13.5p lower at 653.5p, while Persimmon slipped 22p to 949p.

Pub operators were on the back foot after a recent profits warning from bingo and casino group Rank, which took a hit from the UK-wide smoking ban, knocked the sector.

Punch Taverns lost 8p to 997p and Mitchells & Butlers dropped 13p to 630.5p as investors feared that pubs and restaurants could be facing a similar impact. Rank was off 5p, or 5%, at 98.5p.

Oil majors gave back some of their recent gains as oil prices retreated from last week's record highs. BP dipped 6p to 605p and Royal Dutch Shell slipped 30p to 2021p ahead of their interim results later in the week.

Tullow Oil dived almost 6%, or 36p, to 585.5p after UBS downgraded the stock, warning shares looked expensive after a 48% rise over the past two months.

Elsewhere, kitchen equipment group Enodis jumped 12%, or 22.25p, to 211p, after a positive note from Investec following a trade show in the United States last week.

Analysts said the group, which supplies restaurants such as McDonald's, should have some protection in tougher economic conditions as consumers trade down rather than stop eating out.

The leading Footsie risers were Vodafone Group, up 4.7p to 179.7p, Home Retail Group ahead 6.75p to 380p, Morrisons up 4.75p to 297.25p and Carnival ahead 36p to 2268p.

The leading Footsie fallers were British Energy down 47p to 532p, Tullow Oil off 36p to 585.5p, Kazakhmys down 79p at 1455p and Xstrata off 173p to 3260p.