FTSE100 Posts Second Worst Weekly Loss Ever
Britain's top share index ended 8.9 percent lower Friday contributing to a 24 percent slump for the week, the second biggest weekly fall ever, as investors ran scared from the spectre of a full global recession.
The FTSE 100 closed down 381.7 points at 3,932.1, its second biggest points loss ever, dropping below the 4,000 level for the first time in more than five years after its worst week since the crash of October 1987.
With another 90 billion pounds wiped off the FTSE 100's value Friday, there was just one gainer -- news and information provider Thomson Reuters, up a penny.
"The FTSE 100 went below 4,000 today, a level it first achieved in September 1996, that means if you invested in equities 12 years ago, you've seen no gain, which is unbelievable," said one trader.
Banks were the top-weighted losers, with the FTSE 350 banks index shedding more than 11.5 percent.
Barclays, Royal Bank of Scotland, HSBC down 5.2 percent, while 3i Group shed 16.2 percent, and insurers Legal & General and Prudential lost 16.1 and 10.5 percent respectively.
Financials also headed another slide on Wall Street which sent the U.S. benchmark S&P 500 index below the 900 level for the first time in five years on fears tighter credit would spawn world recession.
President George W. Bush said on Friday the U.S. government was moving aggressively to address the financial markets crisis, but he acknowledged that anxiety was feeding on itself as stocks continued to plunge.
The FTSE 100 closed down 381.7 points at 3,932.1, its second biggest points loss ever, dropping below the 4,000 level for the first time in more than five years after its worst week since the crash of October 1987.
With another 90 billion pounds wiped off the FTSE 100's value Friday, there was just one gainer -- news and information provider Thomson Reuters, up a penny.
"The FTSE 100 went below 4,000 today, a level it first achieved in September 1996, that means if you invested in equities 12 years ago, you've seen no gain, which is unbelievable," said one trader.
Banks were the top-weighted losers, with the FTSE 350 banks index shedding more than 11.5 percent.
Barclays, Royal Bank of Scotland, HSBC down 5.2 percent, while 3i Group shed 16.2 percent, and insurers Legal & General and Prudential lost 16.1 and 10.5 percent respectively.
Financials also headed another slide on Wall Street which sent the U.S. benchmark S&P 500 index below the 900 level for the first time in five years on fears tighter credit would spawn world recession.
President George W. Bush said on Friday the U.S. government was moving aggressively to address the financial markets crisis, but he acknowledged that anxiety was feeding on itself as stocks continued to plunge.