FTSE 100 dips on financials

The FTSE 100 closed 1.41 per cent down as financial stocks started to slide again following Friday's massive gains.

Building materials firm Wolseley registered the sharpest gains, rising 14.01 per cent after beating market expectations this morning with annual pretax profits of £145 million.

Miners and energy groups also fared well, as the US bailout plan for the financial sector raised hopes of an economic recovery.

BG Group rose 5.07 per cent, while Cairn Energy shares were up 3.72 per cent.

After last week's rally, financial shares were down again, however. Friends Provident shares fell 8.75 per cent, while Prudential was down 7.17 per cent and HBOS slipped 6.07 per cent.

David Jones, chief market strategist for IG Index, said: "Unsurprisingly today has been a bit more subdued than what we have been used to recently.

"Chancellor Alistair Darling's speech had little effect on the London market. In earlier interviews he said that 'knee-jerk' reactions to the current turbulence were not the answer and suggested that a global approach to better regulation was one of the solutions.

"This is probably one of those many things that is going to be easier said than done."