FTSE remains steady

The FTSE 100 Index remained near its opening mark today as mining and oil companies took up the slack caused by weaker bank shares.

Royal Bank of Scotland and Lloyds TSB were down by 3% while Barclays also slipped as a two-day rally for the sector faded and profit takers moved in.

But the damage to the London market was limited, with rising commodity prices ensuring gains elsewhere and leaving the Footsie just 16.3 points lower at 5899.6 by mid-morning. The top flight index closed at its highest point in more than a month last night.

As well as a number of resurgent mining stocks, Severn Trent joined the risers board as the water company reversed some of the 4% decline seen yesterday after a trading update. Shares were ahead 32p at 1446p.

The sight of crude oil prices at more than 104 US dollars a barrel meant Royal Dutch Shell rose 35p to 1746p and BP lifted 7.5p to 528p. BG Group and Tullow Oil also benefited, ahead 47p to 1172p and 10.5p to 649p respectively.

Among the fallers, Lloyds TSB declined 15.5p to 467.75p, Barclays dipped 13p to 491p and Royal Bank of Scotland eased 10p to 371.5p.

Expectations for a further tightening in mortgage availability – as seen in a Bank of England report today – meant housebuilder Persimmon fell 21p to 757p, a drop of nearly 3%. In the FTSE 250 Index, Barratt Developments fell 16.25p to 426.5p and buy-to-let specialist Bradford & Bingley dipped 7.25p to 197.25p.

Elsewhere, US Federal Reserve chairman Ben Bernanke’s comments yesterday about the prospect of minimal growth in the early part of this year put further pressure on shares in Wolseley, which fell 18.5p to 545p. The building supplies business generates a large slice of its revenues from the US.