Home Business NewsBusiness FTSE 100 ends 5.6 per cent down in 2011

FTSE 100 ends 5.6 per cent down in 2011

by LLB Editor
30th Dec 11 2:10 pm

The FTSE 100 Index rose by five points in the final session of the year, but still ended 5.6 per cent lower than at the start of 2011.

Financial experts will feel that 2011 has been a year to forget for investors, a sentiment seemingly reinforced by the fact that £90.5bn has been wiped off the FTSE 100 over 12 difficult months.

In a shortened day of trading on Friday, the index closed at 5572.28 – down 327.66 points over the year. While doom and gloom remains, it must be said that London’s benchmark index finished the year in better condition than it was expected to back in August when the index was down by 19 per cent at below 5000 because of fears surrounding the US credit rating and the economies of Spain and Italy.

Speaking to Sky, City stalwart David Buik explained that the London index has faired much better than others on the continent but also described it as “a barometer of sorts”.

He said: “We need to identify how the UK will earn its living and pay its way in the years ahead and that means adjusting to change.

“The faltering recovery with family and business budgets under pressure and the ongoing crisis in the eurozone are stark reminders of the need to rebalance our economy away from household and government debt.”

The euro has struggled to recover from the debt crisis engulfing the single currency zone for much of the year, falling to a 15-month low against the US dollar and a 10-year record against the yen. The pound bought 1.196 euros at the close of trading, while it was also up against the US dollar at 1.548.

It comes as no surprise that banks were among the biggest fallers of the year, with Royal Bank of Scotland and Lloyds Banking Group down 49 per cent and 61 per cent respectively. That said, the pair gained on Friday – up 0.1p at 20.2p and 0.4p at 25.9p respectively.

Other heavy 2011 fallers included car insurer Admiral, which fell 44 per cent because of fears that higher-than-normal levels of personal injury claims will dent its profits growth.

In terms of Friday’s trading, some of the FTSE 100’s biggest risers were Sainsbury’s, which was up 6.9p at 302.9p; CRH, which finished ahead 29p at 1280p; and Experian, which was up 16p at 875.5p.

Among the Index’s biggest losers of the day were Man Group, which was down 2.4p at 125.7p; Old Mutual, down 2.4p at 135.5p; and Glencore International, which was down 6.5p at 392p.

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