Slight drop for FTSE

Royal Bank of Scotland slumped more than 4% today as investors reacted to fears about the bank's exposure to the financial crisis in Ireland.

With the country battling to avoid a Greek-style rescue, Ireland's cost of borrowing has reached its highest level since the launch of the European single currency.

RBS owns Ulster Bank and saw its shares drop 1.65p to 40.5p during a dismal session for banking shares after Barclays fell 5.35p to 284.25p and Lloyds Banking Group declined 0.75p to 66.8p.

The banking woes failed to unsettle the FTSE 100 Index, which held firm with a drop of just 6.2 points to 5810.7 after a strong session for mining stocks.

A rise in commodity prices meant Xstrata topped the risers board with a gain of 76.5p to 1445p and Kazakhmys lifted 64p to 1558p, while energy giant BP added 3.45p to 448.9p after oil prices topped 88 US dollars a barrel.

The outcome of the G20 summit in Seoul amid ongoing tensions in the currency markets and fears of a rising tide of protectionism meant investors were likely to remain on edge over the rest of the session.

BT joined mining stocks at the top of London's risers board after the telecoms giant impressed analysts with solid half-year figures.

A strong performance in broadband meant underlying profits for the second quarter were up 13% at £496m (583m), beating City expectations and prompting BT to raise its forecast for full-year underlying earnings to £5.8bn (€6.8bn).

BT shares were 5% higher, up 8.1p to 167.5p.

Outside the top flight, shares in JJB Sports skidded 16% after analysts widened their forecasts for full-year losses to around £40m (€47m). This followed an update showing that promotional efforts and its Serious about Sport turnaround strategy had failed to sustain a sales revival.

While JJB shares dropped 1.5p to 8.1p, rival JD Sports Fashion added 21.5p to 775p. Elsewhere, shares in directories firm Yell fell another 7% - off 0.8p to 11.3p - after its latest disappointing trading update earlier this week.

Restaurant Group was another faller despite reporting a return to sales growth in the third quarter and forecasting a boost for its leisure park sites due to a line-up of blockbuster films in cinemas in the run-up to Christmas.

The Garfunkel's owner remains on track to meet full-year forecasts, but shares fell 9.1p to 278.1p.