FTSE heads south June 11th, 2008

The FTSE fell 104 points (1.78%) to end the day at 5,723.30 amid fears that the UK economy is heading for even tougher times. Leading the charge south were the banking stocks with HBOS closing 11.64% lower at 258p. This leaves the share price lower than existing investors have been offered shares as part of the £4bn rights issue. Royal Bank of Scotland was also hit, falling 9% to close at 212.25p.

However of the large caps it was house builder Taylor Wimpey that was the worst affected. Losing a further 19% today to end at 52.50p the shares have been in freefall since the start of the year when they were hovering around the 200p mark. Not great news if TW happen to form part of your portfolio, like it does mine!

Uncertainty is clearly affecting the markets and now is the time to build up a cash pile so you’re ready to take advantage of the ‘bargains’ that are slowly starting to present themselves.