THE FTSE 100 Index lost more ground yesterday in a drifting session as concerns over US earnings weighed on investors.

In London, the mining heavyweights recovered some losses and many moved into positive territory.

Xstrata lost 4p to 524p, although Vedanta Resources recovered from a weak start to stand 30p higher at 773p.

Crude oil was down to $48 a barrel, but recovered to $50 after figures showing a smaller-than-expected advance in US stockpiles.

Among oil and gas stocks, BG Group shed 35p to 1031p, while BP lost 2.25p to 443.25p.

Financials saw a mixed session, with HSBC down 5p to 437p, despite Goldman Sachs raising its target price. Royal Bank of Scotland also shed 0.5p to 26.1p although Barclays made up some ground lost yesterday, edging 0.1p higher to 157.8p.

Other FTSE 100 risers included foods group Compass, after its better-thanexpected results last week.

This helped shares gain 7p to 318p, more than two per cent .

Medical devices group Smith and Nephew improved nearly seven per cent, or 27p to 450p and British Airways cheered 5.8p to 159.6p.

JD Sports Fashion took centre stage with the publication of full-year results of a nine per cent rise in profits and a solid sales update sent shares up 10.5p to 370p after even bigger gains of almost ten per cent early on. Set-top box maker Pace led the FTSE 250 Index risers board after winning new orders and customers. Shares soared 42 per cent or 42p to 141.5p.

It was followed by housebuilders as investors took a punt on recent recovery signs in the sector.

Taylor Wimpey, which is in the process of sealing a debt restructuring deal, advanced 3.25p to 43p.

Redrow added 14.5p to 191p and Barratt Developments cheered 10p to 128.25p.