Choppy FTSE ends lower over Greek concerns

The FTSE 100 endured a volatile day of trading on Wednesday ending the day lower as fears over whether Greece would be deemed as having put sufficient effort into its austerity drive to get further financial assistance. By the close of trade, the index was lower by 1.4 per cent, a drop of over 76 points to reach 5217.

Chris Bradshaw - Wednesday, September 28, 2011

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The drop follows a day of meteoric rises across the board, a sentiment which experts had predicted would not last given the various pressures on the market. Sure enough, nervousness crept in as investors eyed the impending Greek audit which is being carried out to see if Greece has been sufficiently committed to its financial targets, a necessary measure in order for the country to qualify for the next round of aid. Greece is believed to be due to run out of money again by the first week in October and should financial assistance be withheld, it would have no option but to default on its debts which would trigger a chain of catastrophes across the EU.

Man Group had a disappointing day, seeing its share price evaporate by nearly a quarter with a fall of 24.87 per cent. The hedge fund manager suffered after announcing its profits were lower by $35 million compared to the same period last year with its total amount of funds being managed down by $6 billion.

Also at the wrong end of the table was Cairn Energy, losing 6.46 per cent as its exploration mission in Greenland continues to provide poor returns. One venture has now been plugged and abandoned with all attention now focused on AT2-1 well in the South Ungava region.

BG Group was the top riser in the blue chips, climbing 3.40 per cent as it was upgraded to 'conviction buy' by influential broker Goldman Sachs, plus newspaper talk that there may be an impending bid for the firm from China.


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