LONDON: Britain's top share index lingered on Thursday at its lowest level in more than three years, as leading financial stocks lost ground while oil prices weakened further.
However, media and education publisher Pearson outperformed the weaker market to surge nearly 10 percent after investors welcomed its plans to cut costs.
The blue-chip FTSE 100 index was flat at 5,676.98 points in early session trading, but remained near its lowest level since late 2012.
"I would not want to buy in here. Trying to call a bottom to this market is a bit of a fool's errand," said Darren Sinden at Admiral Markets.
The FTSE had slumped 3.5 percent on Wednesday, and is some 20 percent below a record high of 7,122.74 points reached last April. The FTSE 100 is down nearly 10 percent since the start of 2016.
Concerns about a slowdown in China, which is the world's second-biggest economy and a leading consumer of metals and oils, have contributed to world stock markets having lost ground.
U.S investment bank Citigroup cut its growth forecasts for the world economy on Thursday, and said that risks of a global recession were increasing.
Oil prices further succumbed to concerns of a supply overhang on Thursday, while shares in British bank Lloyds and insurer Prudential Plc were hit by price target cuts from brokers.
"The FTSE is extremely bearish and if prices keep below 5,900 then a further decline towards 5,500 seems like a live possibility," said FXTM research analyst Lukman Otunuga.
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