FTSE ends lower amid Greece fears

The FTSE 100 Index closed 14 points lower at 5876

Published: 9:21am, 8th February 2012
Updated: 8:30am, 9th February 2012

Nerves about whether Greece will stave off default weighed on London's leading shares index despite strong results from Nurofen-to-Durex firm Reckitt Benckiser.

The FTSE 100 Index pushed above the 5900 mark before slipping back to close 14.3 points lower at 5875.9 amid ongoing uncertainty over the outcome of protracted talks between Greece and its creditors.

Meanwhile, Greek coalition leaders began crucial talks about whether to accept another round of unpopular austerity measures which are essential if it is to receive the next round of bailout funds.

Germany's Dax and France's Cac-40 were flat, while the US's Dow Jones Industrial Average was down 0.4% as the London market closed.

The pound slid on currency markets, with the Bank of England widely expected to announce plans to pump billions more into the economy. It was down against both the euro and the dollar at 1.19 and 1.58 respectively.

Banking stocks lost much of their earlier gains amid the uncertainty in Greece. Barclays fell 3.2p to 233.6p despite an upgrade from Citigroup and as investors geared up for results on Friday.

The broker said Barclays was the pick of the UK's domestic banks but despite this assessment Lloyds Banking Group was 0.5p higher at 35.8p. Royal Bank of Scotland was down 0.04p to 28.8p.

Mining firm Xstrata was 2p lower at 1198p amid City pressure for Glencore to improve the terms of its merger proposal. Standard Life and Schroders have already come out against the £57 billion merger, despite the deal price offering a 15% premium for Xstrata shareholders.

The top riser in the FTSE 100 Index was Reckitt Benckiser after full-year results showing an 11% rise in underlying profits came in slightly stronger than expected. The company also set out its "strategy for continued outperformance" by intensifying its focus on health and hygiene brands and faster growing consumer markets. Reckitt's investors liked the update as shares were 3% or 97p higher at 3479p.

In the FTSE 250 Index, shares in fashion retailer SuperGroup slumped 17% after weaker-than-expected shop trading in January prompted it to scale back profit forecasts. Shares were 120.5p lower at 579.5p.