Mixed emotions on FTSE's last day of decade

There were mixed emotions for investors today as the decade concluded with the FTSE 100 Index registering its best annual performance since 1997.

However, the top flight is still 22% lower than its level at the start of 2000, when the Footsie stood at a record 6930.2.

In a rollercoaster year, the blue-chip index hit a six-year low in March before measures from governments and central banks helped restore confidence.

A five-day festive rally ended yesterday but the FTSE 100 is still 22% higher over the year and close to the level seen before the collapse of Lehman Brothers in September 2008. It stood 9.7 points higher at 5407.6 towards the end of a shortened trading session today.

London’s impressive performance over the year is still overshadowed by the gains seen in Asian markets, with China’s Shanghai Composite Index up almost 80% over the year after falling 65% in 2008. The only underwhelming result came from Tokyo’s Nikkei 225, which added 19%.

In thin London trading, housebuilding shares were higher after the Nationwide building society said house prices rose 5.9% in 2009 and by 0.4% in December - the eighth straight month of increases.

This was good news for Taylor Wimpey, which rose 0.55p to 38.75p, while rival Persimmon added 3.9p to 461p and Barratt Developments improved half a penny to 121.5p.

Retailers will be watched closely in the coming days, but the forthcoming updates from the sector failed to harm share prices as Next rose 23p to 2091p, Sainsbury’s lifted 3.5p to 322.3p and Greggs added 8p to 434.4p in the FTSE 250.

Defensive stocks such as utility firms posted the biggest falls of the session, with Centrica down 2.3p at 279.6p and Severn Trent off 8p at 1085p.