FTSE slides 2.4 percent as Citi woes pile on pressure

By Simon Falush

LONDON (Reuters) - Top shares ended 2.4 percent lower on Friday as fears over the fate of banking giant Citi and nervousness about the global economy gripped investors, leading them to sell relatively risky equities.

The FTSE 100 .FTSE closed down 94.03 points at 3,780.96, and is down 11 percent on the week and 41 percent this year.

Shares in embattled No.2 U.S. bank Citigroup (C.N) tumbled for a fifth straight day as chief executive Vikram Pandit tried to play down speculation that the banking giant may sell major businesses.

Defensive pharmaceuticals were hit as the sector which had held up reasonably well suffered amid a broad sell-off. Heavyweights AstraZeneca (AZN.L) and GlaxoSmithKline (GSK.L) slid 8.7 and 6.9 percent.

"With big banks being pushed towards the wall, people are keeping hold of their money," said John Haynes, senior equity strategist at Rensburg Sheppards.

"It's learned behaviour, every time people try to bargain hunt, the market falls again so until there is stability for a time, people will continue to be cautious."

Energy stocks slid with oil prices holding below $50 per barrel as fears intensified that a deep global recession will crimp demand.

BP (BP.L) fell 0.4 percent, Royal Dutch Shell (RDSa.L) lost 2.9 percent, and Tullow Oil (TLW.L) fell 1.9 percent.