BRITAIN'S leading share index shed 1 per cent yesterday, extending the previous session's sharp losses as miners fell on weaker coal prices and Marks & Spencer slumped after a profit warning, though drugmakers headed north.
The FTSE 100 closed dow
n 53.6 points at 5,426.3 to touch a three-month low in a volatile session after trading as much as 1.6 per cent higher. On Tuesday, the UK benchmark index lost 2.6 per cent.
Paul Webb, chief dealer at CMC Markets, added: "The overall message for the time being is that markets remain in something of a rout and there seems to be no quick resolution to be had."
Late session falls from heavily weighted miners and poor economic news in the US resulted in the Footsie giving back gains of more than 70 points – which had taken it above the 5,500 barrier at one stage.
The session was dominated by retail woes after the grim update from M&S, with the firm's shares closing down 25 per cent amid a sharp decline in first-quarter sales as consumers feel the squeeze.
M&S, off 78p at 240p – its lowest level for more than seven years – led a bleak day for the sector after like-for-like sales fell 5.3 per cent in the 13 weeks to 28 June – the group's worse quarterly performance for three years.
The firm was closely followed by fashion chain Next, down 72p or 8 per cent at 837.5p after a downgrade from Panmure Gordon.
In the FTSE 250, M&S rival Debenhams – also marked down by Panmure following the M&S update – fell 12 per cent or 5p to 37.25p – a new all time low for the embattled chain.
Among the food retailers, supermarkets Sainsbury's and Morrisons lost 20.25p to 290p and 10p to 253p respectively, while Tesco fell 19.3p to 343.7p.
Housebuilders were also punished after Taylor Wimpey warned it had yet to secure capital to shore up its finances in a worsening housing market and was axing 900 jobs.
Taylor Wimpey's shares plunged 42 per cent, or 25p, to 35p in the second tier after a dismal spring selling season.
Drugs giant AstraZeneca was among the leading risers, up 5 per cent to 2,233p, after a legal victory in its fight against generic copies of its top-selling drug, Seroquel.
On the banking front, HBOS slipped a further 3 per cent to 261p.
Geneva-based hedge fund Jabre Capital Partners joined the ranks of groups taking a bet that HBOS shares will continue to fall. Yesterday it emerged that Jabre had taken a 0.27 per cent position on the Scottish bank.
Under new industry rules designed to bring transparency to the market, any investor taking a short bet over 0.25 per cent on any company facing a rights issue must make an announcement to the stock exchange.
Royal Bank of Scotland was flat at 204p while HSBC nudged up 7.5p to 762p.
The full article contains 521 words and appears in The Scotsman newspaper.
