GM decline depresses FTSE

The FTSE 100 Index closed up 30.4 points at 4417.9

Financial stocks were among share losers on the FTSE 100 Index as investor nerves returned to drag the marker lower.

Trading kicked off on the back foot after the looming bankruptcy of car giant General Motors dealt a blow to market sentiment, having sent the Dow Jones Industrial Average 2% lower on Wednesday night.

The FTSE 100 Index stood 52.1 points lower at 4364.2, with insurers, banks and investment groups littering the fallers board.

Financial services and hedge fund firm Man was one of the leading fallers, off 5% or 11.5p to 238.5p after it announced a 64% fall in full-year profits and said funds under management had declined since its last update in March.

This raised fears about its 2010 performance, even though the results were ahead of hopes.

Other financial sector stocks under pressure included the banks, with Barclays, off 7p at 283p and HSBC down 15p to 536p, as well as insurers led by Prudential, 18.5p lighter at 419.75p. But a mixture of stocks were hit by the general downbeat investor sentiment, including British Land after a fall of 17.75p to 386.5p, despite Goldman Sachs upping its target price.

Among the few risers were more defensive stocks, including British Gas parent Centrica, 1.25p better at 250p and drugs firm Shire, which added 9.5p to 866p. Oil giant BP was also in the black, up 0.75p at 505.75p, with oil prices above 63 US dollars a barrel adding support.

In the FTSE 250, building supplies firm Wolseley was another heavy faller after chief executive Chip Hornsby reported a near 90% fall in profits and said trading conditions were likely to remain tough for some time. Shares fell 13% or 160p to 1068p.

Soft drinks firm Britvic meanwhile added 4.5p to 2759.5p after it emerged that private equity firm Permira had sold its 13% share in the business.

But elsewhere shares in sportswear firm JJB Sports were down 3% or 1.25p to 36p after entrepreneur Mike Ashley's Sports World empire offloaded its directly-owned minority stake. Business travel firm Hogg Robinson also moved lower, falling 0.25p to 23p after reporting a 9% fall in annual profits and saying that conditions remained challenging.