FTSE 100 eases after record quarter
The leading stock exchange edged lower on Thursday, the first day of the fourth quarter, as investors paused after London's biggest-ever quarterly gain on economic recovery hopes.
The FTSE 100 index of leading shares eased 0.47 percent to 5,109.80 points in late morning trade.
The FTSE had surged by a record-breaking 21 percent during the third quarter, which ended on Wednesday, as investors were heartened by mounting evidence that the global economy was on the mend.
"The FTSE 100 has enjoyed its best ever quarter, adding 21 percent over the last three months, leaving many to ask the question whether the rally can now continue," said analyst Ben Potter at financial betting firm IG Index.
"Certainly any pickup in mergers and acquisitions activity will lend support across the board, whilst higher resource prices will support the heavyweight mining and petrochemicals sectors."
Despite ending in negative territory, the London FTSE has now gained about 15 percent since the start of 2009.
ODL Securities analyst John Murphy also questioned whether the rally was sustainable.
"A stellar run has left the markets looking healthy, but investors are still asking themselves if it is a bubble, and if so, when will it burst?" Murphy commented.
Copyright 2009 AFP European Edition
