Scots giants hit by market turmoil

SCOTLAND'S heavyweight industrial stocks were among the prominent fallers caught up in yesterday's fresh market turmoil, with Aggreko, Cairn Energy and Wood Group among the worst hit.

Glasgow-based temporary power supplier Aggreko was down 8 per cent or 151p to 1,736p, Edinburgh oil explorer Cairn was 27.2p, or 8.7 per cent, lower at 286.5p and Aberdeen oil services giant Wood Group also fell 8.7 per cent, or 50p, to 826.5p.

Investment bank Morgan Stanley warned that the economies of the US and Europe were "dangerously close to recession", sparking a sell-off in mining and commodities stocks that could be hit by a drop in demand.

The FTSE 100 index plunged 4.5 per cent or 239.37 points - the 12th biggest points fall in its history and its largest drop since November 2008 - to 5,092.23, erasing nearly all of the past days' gains and wiping 62 billion off the blue chips' value.

A similar bloodbath erupted across Europe, with Germany's Dax down 5.8 per cent and the French Cac falling 5.5 per cent.

A number of stockbrokers highlighted the buying opportunities being created by the falling share prices.

John Douthwaite, chief executive of Simplystockbroking, said: "Despite the falls, the general uncertainty in markets and the fact a large number of investors and brokers are away on holiday has given rise to a growing number of opportunistic retail investors still buying shares and tucking them away for the long term.

"Surprisingly there seems to be a trend with self-directed investors picking up shares in leading FTSE companies whilst leaving the more-risky small cap shares for the time being".

Gold pushed to new record highs of $1,827 an ounce, as it was seen as a safe haven amid the chaos. The pound was down against the dollar at $1.65 after the greenback was also seen as a safe haven. But sterling was up at €1.15 against the euro.

Every stock in the Footsie fell in a bleak day of trading, leaving the risers board empty.

Financial shares in the UK suffered another torrid session following reports that European banks are having their US divisions checked for contagion from the eurozone debt crisis. Barclays was the biggest faller, down 11.5 per cent, or 19.95p, to 154p. Royal Bank of Scotland was down 11.3 per cent, or 2.8p at 21.95p, while Lloyds tumbled 9.3 per cent, or 3.04p, to 29.8p and HSBC was off 6 per cent or 32.4p at 509.6p.

The heavily-weighted mining sector was hit by fears over China's waning demand, with Xstrata down 10 per cent, or 110p at 972p. Commodities giant Glencore was also down 10 per cent or 39.55p at 355.45p.

Brent crude in London sliding more than 2 per cent to $107.8 a barrel. Oil giant BP fell more than 13p to 400p and Shell fell 68p to 1,924p.

Among the Scottish stocks, Celtic non-executive director Brian Duffy netted 50,000 shares at 42p each, spending 21,000. Shares in the football club edged up 0.5p to 41.5p.East Kilbride-based chemicals transporter Interbulk dipped by 0.13p to close at 6.88p amid the wider market sell-off. Chinese chemicals giant Sinotrans - which bought one-third of Interbulk in May - yesterday appointed an executive director to the company's board.