FTSE 100 at four-year low

Monday, 06 October 2008 12:00

The FTSE 100 fell to its lowest level in four years by mid morning and was down 5.51 per cent by 12:00 BST.

The UK's benchmark index hit a low of 4,670.89, its lowest point since 2004, led by declines in financial stocks amid ongoing uncertainty.

Miner Kazakhmys was leading the fall, with a 19.29 per cent fall in its share value, while HBOS fell 14.71 per cent.

The bank lost some of last week's gains after a newspaper reported the government is considering buying shares in HBOS and Royal Bank of Scotland (RBS) to shore up the industry.

Fears existing shares would be diluted in the move also sent RBS stock down, by 14.39 per cent.

Utilities and tobacco stocks benefited from the jitters this morning, as investors headed for 'safe haven' stocks.

British American Tobacco shares were up 1.63 per cent, while Scottish and Southern Energy increased by 0.49 per cent.

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