Dismal US sales drag down FTSE
END-OF-DAY REPORT: Headline shares were sharply lower by the close, investors wary as US markets tumbled on dismal home sales data, with commodity issues hardest hit on fears demand for raw materials will fall off.
At the close of business, the FTSE100 was down 78.89 points at 5,155.95 with the FTSE250 off 125.24 points at 9,700.91 and the FTSE Smallcaps 24.69 points weaker at 2,761.32.
LONDON MARKETS
Concerns emanating from the US that the economic recovery is slowing pushed commodity issues lower on fears that demand for raw materials will be hit. A tumbling Dow did nothing to raise confidence.
In London, mining issues bore the brunt of the ill-sentiment, with Vedanta Resources the biggest blue chip faller, down 155p at 1,882p, as news circulated that the Indian Ministry of Environment and Forests refused an application to mine bauxite in the state of Orissa.
In the Midlands, builders’ merchant Wolseley sank close to the foot of the league table, off 67p at 1,239p, following news it had sold its Brandon Hire business for £43m.
Elsewhere, Punch Taverns rose on news performance was likely to be ahead of expectations , while St Modwen also picked up .
Property group Roeford was a major faller, along with Moseley pharmaceutical Henderson Morley. The Islamic Bank of Britain also dipped.
