THE FTSE 100 Index slid into the red yesterday, as retail stocks came under pressure for the second day in a row.

Tuesday’s dividend cut from Marks & Spencer cast a shadow over many players in the sector, including Argos owner Home Retail Group and Currys and PC World firm DSG International.

The wider FTSE closed down 13.8 points at 4468.4, as investors digested mixed economic messages and took profits after a run of recent gains.

In London, M&S fell 17.75p to 294p, while Home Retail Group also suffered, losing 10.75p to 241p. Supermarket Sainsbury’s joined them after turning ex-dividend, meaning investors will no longer get the latest payout. Shares were 16.75p lower at 329.25p.

In the FTSE 250, DSG was the worst performer, shedding 2.75p to 25p, or ten per cent, while cycles and car maintenance firm Halfords was off 15.5p at 319p.

Back in the top flight, shares in part-nationalised Lloyds Banking Group were adjusted lower at the start of trading, diluted by the impact of its £4bn placing.

However, the stock closed at 70.5p, having fallen below the adjusted price of 76.6p after Credit Suisse lowered its target price.

Other banks on the back foot included Barclays, down 1.25p at 293.5p, HSBC, off 13.5p at 561.5p and Royal Bank of Scotland, off 0.7p at 42.4p.

Among the risers, oil prices advancing to a sixmonth high above $62 a barrel helped BG Group and Royal Dutch Shell advance 12p to 1102p and 19p to 1656p respectively.

BP also rose 3.75p to 513p after a US government report showed a drop in US oil supplies for the second straight week.

Other risers included credit checking firm Experian, 7p better at 493p after impressing the market with better than expected full-year profits.