FTSE ends the day modestly lower as financial stocks slip

END-OF-DAY REPORT: Headline shares ended the day modestly lower, with broad-based financial losses overpowering strong gains for miners as gold hit another new record high, and base metals firmed as the dollar weakened.

At the close of business, the FTSE100 was down 24.28 points at 5,551.91 with the FTSE250 off 96.74 points at 10,448.33 and the FTSE Smallcaps 11.71 points lower at 2,931.48.

The CBI today warned that UK growth will slow in 2011 due to the measures being introduced to cut the fiscal deficit.

The news hit financial stocks, pushing the main index into the red. Another new record high for gold pushed Fresnillo up 22p at 1,218p, while Randgold Resources rose 180p at 6,490p and African Barrick Gold added 14.5p at 601p.

The precious metal was trading at $1,290 an ounce as the bell rang in London.

Also making ground today, Imperial Tobacco rose 32p at 1,925p after an in-line trading statement, with full-year net revenues expected to be up around 3% as prices edge up.

On the downside with blue chips, financial issues came under pressure, with insurers suffering from the aftershock of a sector downgrade yesterday and banks hurt by Lord Turner’s criticisms at the Mansion House last night.

Aviva was the worst performing blue chip of the day, down 20p at 397p, while Prudential slipped 6p at 613p.

Banks were on offer, in the wake of strong warnings on future regulation from the FSA chairman Lord Turner in his annual Mansion House speech last night, with Royal Bank of Scotland the worst of them, down 1.08p at 47.5p.

HSBC, looking to appoint a new chair, fell 7p at 664p, while Lloyds eased 1.05p at 75.85p as its search for a new Chairman begins.

The broad-based losses also took hold in the retail sector, with supermarket operators under scrutiny. Morrisons dipped 3.5p at 301p and Sainsbury fell 1.3p at 390.5p, while M&S weakened 4.5p at 376.8p.

Tesco bucked the trend, adding 2.9p at 435.9p, after an upgrade to overweight from equal-weight at Barclays Capital.

Commercial property firms came under the cosh, with Segro hardest hit, down 7.3p at 262.5p, while Land Securities fell 8p at 626.5p, Hammerson eased 9.1p at 387.2p and British Land dropped 7.3p at 464p.

Other notable casualties included software house Autonomy, off 61p at 1,768p, builders’ merchant Wolseley, 15p lower at 1,483p, and industrial pumps manufacturer Weir Group, down 45p at 1,395p after a downgrade to hold from buy at RBS.