FTSE falls by more than 90 points

The London market was mired in negative territory today after investor confidence was shaken by gloomy sentiment from around the world.

With oil prices on the rise again, and market falls in New York and across Asia overnight, trading in London’s blue-chip index got off to a miserable start by falling more than 90 points.

By mid-morning the FTSE 100 Index was down 77.3 points, more than 1%, to 5889.6.

Asian markets prompted the poor opening after oil prices closed at a new all-time high of 100.01 US dollars in New York last night, fuelling fears about the potential impact on world economies. Japan’s Nikkei 225 index closed more than 3% lower, while the Hong Kong’s Hang Seng was down 2%.

In London, Alliance & Leicester shares led the faller’s board with an 11% drop after annual profits came in at the lower end of already significantly reduced expectations.

With trading conditions likely to impact on its performance in 2008, investors took flight from A&L with a share price drop of 62p to 466p.

Rival lender Halifax Bank of Scotland fell 14.5p to 644.5p, but Barclays continued to benefit from results yesterday, rising 8.5p to 485.5p.

Housebuilders were also among the fallers after a broker downgrade for the sector. Taylor Wimpey was down 10.1p to 170p, and Charles Church owner Persimmon was off 25p at 715p. FTSE 250 rival Barratt Developments was off 17.75p at 393.75p.

Building supplies businesses were also depressed, with B&Q owner Kingfisher down 3.8p to 132.9p ahead of a trading update tomorrow. Wolseley, which does much of its business in the United States, fell 18.5p to 660p.

British Gas owner Centrica joined the slide ahead of its results tomorrow. Shares were off 8p at 325.5p.

The biggest gain of the session came from packaging firm Rexam, which climbed 20.75p to 442.75p after broker Seymour Pierce upgraded the stock in the wake of encouraging full-year results.