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FTSE ends lower as Lloyds slides; commodities gain

Wed May 20, 2009 10:23pm IST
 
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* Banks weak; Lloyds falls on UK asset plan worries

* Heavyweight miners boosted by firmer metal prices

* Buoyant crude price lifts oil majors

By Tricia Wright

LONDON, May 20 (Reuters) - Britain's leading share index closed 0.3 percent lower on Wednesday, with shaky financial stocks offsetting strength in heavyweight oils and miners.

The FTSE 100 .FTSE index ended the session down 13.84 points at 4,468.41. The benchmark index is up 0.8 percent this year, and has gained nearly 30 percent since a six-year low hit on March 9.

"We are still in debate mode as to whether this is a continuing bear market rally or whether it is actually marking the start of another bull market," said Richard Hunter, head of UK equities at Hargreaves Lansdown.

"There are a number of question marks which remain, not least of which is the strength of the U.S. economy, let alone the UK economy, (but) there are more and more economic indicators coming through suggesting that although we can't start to use the word 'recovery' yet, at least the pace of decline seems to be moderating," he said.  Continued...

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