FTSE losing ground

The FTSE 100 Index was in negative territory today despite better than expected profits from banking giant Barclays.

Investors were impressed by consensus-beating profits of £6.1bn (€7bn) as the bank added that writedowns in 2009 would be below the £8bn (€9bn) posted last year.

But by mid-morning, the Footsie was 28.8 points lower at 4263.1 as commodity stocks weighed on the wider index.

Barclays was the top flight's leading riser - up 7.6p to 112.4p, or 7% after the results, despite warnings over the outlook this year.

Elsewhere in the sector, Royal Bank of Scotland added 1.1p to 25.1p, although Lloyds Banking Group shed 2p to 103p.

Property firm Hammerson also gained 7% or 29.25p to 426.5p despite announcing plans to raise £584.2m (€671.6m) in cash from shareholders.

But mining stocks helped drag blue-chips lower. Losers included Xstrata, off 17p at 785p after announcing plans for nearly 700 job cuts in its Canadian operations.

Rio Tinto was the Footsie's leading faller after RBS analysts forecast a 16% drop in underlying earnings during the second half of 2008. Rio lost 81p to 1876p.

Oil and gas firm BG Group was also 20p lower at 1065p in the wake of a proposed £360m (€414m) offer for Australian coal-seam gas firm Pure Energy.

BP meanwhile shed 4.5p to 506.5p and Royal Dutch Shell lost 20p at 1656p as crude oil hovered around the 40 dollars a barrel mark.

Elsewhere a downgrade for broadcaster BSkyB from Cazenove brokers and worries over the cost of the recent auction for Premiership television rights saw the firm lose 9p to 241.25p.

In the FTSE 250, Currys and PC World owner DSG International was the biggest faller after weekend reports of a potential rights issue. DSG, which refused to comment, saw shares slide almost 5% or 1.25p to 25.25p.