FTSE at new 4-yr low despite bank rescue, rate cuts

* FTSE 100 falls 5.2 pct

* Banks, except HBOS and RBS, fall despite UK rescue package

* Coordinated rate cut moves fail to help

* Heavyweight commodity stocks fall on growth concerns

(Click on [nCRISIS] for more on financial turmoil)

By Simon Falush

LONDON, Oct 8 (Reuters) - Britain's top share index sank to its lowest close in over four years again on Wednesday as a 50 billion pound ($87.84 billion) injection for banks from the state and coordinated interest rate cuts from global central banks failed to lift confidence. The UK government said it would pump taxpayer funds into the embattled banking sector just hours before the Bank of England signalled a half percentage point interest rate cut in tandem with other global economies led by the Federal Reserve.

The rate cuts briefly lifted the FTSE 100 .FTSE into positive territory, but jitters resurfaced once again, and the index closed down 5.2 percent or 238.5 points at 4,366.7, its lowest close since August 2004.

The index has lost 12.3 percent so far this week and is on track for its biggest weekly fall since the crash of 1987, having shed 32.4 percent in the year to date.

Analysts said it is too early to judge whether the measures will succeed in settling the markets.

"The problem is there is too much information around, the movers in the market are traders, investors will vote over the course of the weeks and months ahead," said John Haynes, senior equity strategist at Rensburg Sheppards.

HBOS (HBOS.L: Quote, Profile, Research, Stock Buzz) leapt 24.5 percent recovering a large portion of the 40 percent it lost in the previous session, supported by relief at hopes that its acquisition by Lloyds TSB (LLOY.L: Quote, Profile, Research, Stock Buzz) was on course, traders said.

But the rest of the sector remained under pressure, with Barclays (BARC.L: Quote, Profile, Research, Stock Buzz), Lloyds TSB, HSBC (HSBA.L: Quote, Profile, Research, Stock Buzz) and Standard Chartered (STAN.L: Quote, Profile, Research, Stock Buzz) losing between 2.4 and 11.5 percent.

The FTSE 350 banks index .FTNMX8350 lost 2.7 percent.

Under the bank rescue plan at least 200 billion pounds will be made available to UK banks under a special liquidity scheme, and banks will increase their total Tier 1 capital by 25 billion pounds.

The government will also provide an incremental minimum of 25 billion pounds of further support for all eligible institutions, in the form of preference shares, permanent interest-bearing shares (PIBS) or as assistance to an ordinary equity fund-raising.  Continued...