FTSE 100 Index: 3,685.4 (-7.6); FTSE Mid-250 Index: 4282.60 (+.40)

HOPES that London's stock market would take a strong run at 3,700 on the FTSE 100 scale were dashed by a combination of factors yesterday with share prices of Britain's top stocks looking vulnerable throughout the session.

However, second liners maintained their out performance against the marketleaders, with the FTSE Mid-250 hitting a new all time high.

A disappointing overnight showing by Wall Street, German money supply figures every bit as bad as the pessimists had warned and a steep fall on Wall Street at the start of trading kept British shares on the downslope.

The performance was made to look all the more pedestrian after the gilts market staged a rapid and determined rally to close almost a full point ahead on the day, after falling around a quarter of a point during early trading.

There were no major shocks from the day's company news items contributing to the poor performance; on the contrary, there were a number of extremely bullish results, especially from the second line stocks.

Telecoms stocks, admittedly, were among the FTSE 100's poorest performers, with Vodafone and BT down 3 per cent and 2 per cent respectively and heading the downside list after the latest consultative document from Oftel, the telecoms industry watchdog. Dealers said the report contained nothing too damaging, but that the market was always liable to take a dim view of any move to limit profits growth at one of Britain's biggest companies.

At the close of the session the FTSE 100 index displayed a 7.6 decline at 3685.4.

Undermining confidence in the top stocks, traders said, was evidence that several large lines of stock were being offered around, including a block of five million Royal Bank of Scotland.

The big winners behind the FTSE Mid-250's move to a new peak included Weir Group the engineering company, Dorling Kindersley, the publishing group, Wassall, the conglomerate and Hammerson, the property group.

Wall Street's disappointing close overnight - the Dow Jones Industrial Average settled 14 points down on balance after crossing the 5,700 level at one point - and worries about the day's scheduled economic data saw the FTSE 100 open over seven points lower. At its worst, minutes after the opening, the index was down almost 20 points.

Turnover of 703.1 million shares was described as disappointing by traders, with non FTSE 100 stocks accounting for 55 per cent of the total. Customer business on Tuesday, boosted by the big switch operation out of gilts and into equities, was a hefty £2.2 billion.