FTSE 100 falls 1.08%

FTSE 100 falls 1.08 per cent
FTSE 100 falls 1.08 per cent
 

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Tuesday, 11, Aug 2009 05:38

The FTSE 100 dropped below the 4,700 mark as concerns over the banking sector continued to drag the index lower.

Lloyds Banking Group led a 1.08 per cent dip to 4,671.34 as investors responded to a potential rights issue at the bank.

Shares in the bank were down 7.05 per cent over the day, followed by Aviva, down by 6.03 per cent.

International Power helped offset the losses after increasing its interim dividend, with shares up by 7.25 per cent, while packaging group Rexam rose 6.05 per cent on the index.

Anthony Grech, market strategist for IG Index, said: "Tomorrow's quarterly inflation report from the Bank of England may provide some fresh direction and although the forecasts make for rather grim reading, today's adjustment may have at least taken some energy out of the market.

"This could cushion the downside to an extent, but it's worth noting that volumes in the underlying market remain brisk despite the onset of the quiet summer season."

Over in the US, Wall Street continued to see falls after a four-week rally ended last night.

The Dow Jones was down by 1.01 per cent, while the S&P 500 was off by 1.26 per cent going into afternoon trading.


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