FTSE100: 6729.79, -20.79 (3.1%)
Mon close: Petrofac warning hits market
A disastrous update from oil services group Petrofac saw £1bn wiped off its shares and undermine any upside in the wider market.
Petrofac was the outstanding stock, its shares falling by 26.45%, one of the biggest one-day falls for any company this year and a result of a profits warning. Its shares closed down 315.5p at 877.50p.
Aviva also suffered a fall after it was revealed on Friday night that it was in talks with Friends Life over a £5.6 billion takeover. A merger could result in 2,000 job losses, according to some sources. Its shares were down 5.38% at 510p while Friends topped the FTSE risers, up 5.9% at 368.2p.
BT rose 3.7% to 394.1p as investors warmed to the prospect of a reunion with O2 which Telefonica may be prepared to sell and thereby plug a gap in BT’s offering.
The FTSE 100 closed down 0.31% or 20.97 pts at 6729.79.