Investors were given a reminder of the fragile state of the London market yesterday after seeing the FTSE 100 Index go into reverse.

The Footsie closed 75.5 points lower at 4131.5 as the blue-chip index lost hold of the gains that had taken it to a nine-month high on Wednesday.

Traders blamed profit-taking after the market's recent strong run, coupled with resistance to the 4200 threshold, for the sudden decline.

There has been little in the way of company announcements to excite dealers, although economic news did little for the overall mood.

The downbeat data included a 0.1 per cent month-on-month dip in retail sales volumes for May and worse-than-expected public borrowing figures.

In London, advertiser WPP was the only blue-chip company to make a major announcement.

WPP shares went lower, 23.5p to 467.5p, as it detailed plans to raise £100m through the placing of new shares as part of its bid to buy debt-laden rival Cordiant.

Mid-cap stock Cordiant's return to the market following Monday's suspension resulted in a 1.88p fall to 2.87p. That was after shareholders were told WPP was offering them 2.4p a share, or £10m.

Elsewhere, shares in Abbey National fell five per cent, or 27.25p, at 485.75p yesterday.

Other banking and insurance stocks also turned sour after a week of gains, with Prudential down 11.75p at 387.5p, Lloyds TSB off 19.5p at 455p, HBOS falling 23p at 789p and Barclays dropping 13.5p to 462p. Royal Bank of Scotland shares slid 38p to 1736p.

Apositive broker note on Footsie newcomer Mitchells & Butlers helped the pubs group rise to the top of the blue-chip risers board, up four per cent, or 11p, to 236.75p.

Other drinks stocks benefited, with Diageo ahead 7.5p at 687p, Scottish & Newcastle up 7.25p at 394.5p and Allied Domecq 4.5p stronger at 353p.

Gallaher rose 10.5p to 585.5p, Imperial Tobacco lifted 8.5p to 1070p and British American Tobacco added 10.5p to 657.5p.

Among other top flight stocks, electrical retailer Dixons gained 2.25p at 116.75p.

Outside the Footsie, Regent Inns fell seven per cent, or 5.5p, to 72p after it said like-for-like sales at its Australian-themed Walkabout bars had fallen 6.9 per cent in the 49 weeks to June 14.