EMBATTLED oil firm BP sank to the bottom of the FTSE 100 Index yesterday after speculation that managers could face manslaughter charges over the Gulf of Mexico oil spill.

The group fell more than two per cent as it also came under pressure over its troubled deal with Russia’s Rosneft.

But the wider FTSE 100 Index closed 27.68 points higher at 5932.2, as the heavily-weighted mining sector pulled the market out of the red.

A marginal improvement in Britain’s economic performance in the fourth quarter of 2010 lifted the mood in an otherwise quiet session.

Official figures confirmed the UK economy contracted by 0.5 per cent – better than the 0.6per cent decline previously estimated – but revealed household disposable income fell for the first time in 30 years.

BP held the market back from further progress after it was reported that US prosecutors were considering whether to pursue manslaughter charges over the Deepwater Horizon explosion.

Shares were down 10.6p to 466.55p.

Half-year figures from Plumb Center parent Wolseley saw the group rise close to the top of the FTSE risers board.

Shares lifted 65p to 2154p – or three per cent – after it swung to a first-half profit and said it will resume dividend payments because of improved demand in most of its markets.

Barclays led bank stocks down, off 6.4p to 285.9p, after the sector made gains on Monday following upbeat broker comments.

Royal Bank of Scotland and Lloyds Banking Group declined 0.5p to 41.8p and 0.4p to 60.2p respectively.

Identity theft protection business CPP was one of the day’s biggest casualties, as it lost nearly half its value after the firm said it was being investigated by the Financial Services Authority.

Shares fell by 130p to 150p, or 46 per cent.