London shares follow New York down
Steelmaker Corus led a large fall in London shares today after the US market suffered its biggest one-day loss in two years.
The company’s shares headed a long list of Footsie fallers following the 191-point slump in the Dow Jones Industrial Average on Friday.
American stocks nose-dived amid concerns that growth in the world’s largest economy is waning faster than expected, with disappointing figures from computer maker IBM fuelling the fears.
The Dow’s fall prompted Tokyo’s Nikkei index to fall by 4% earlier today and the FTSE 100 Index also came out in sympathy, chalking up an 85.1 point loss to 4806.5 by mid-morning.
Corus lost ground, down nearly 4% or 2p to 48.5p, as investors fretted that demand for its products had peaked.
Only one top flight stock, ITV, was in positive territory after a weekend report claimed former BBC director general Greg Dyke was weeks away from making a £6 billion bid for the group. Shares in ITV gained 0.2% or 0.25p to 124.75p.
Losses hit the whole range of blue chip stocks, with oil, industrial, banking and insurance stocks among the heaviest fallers.
HBOS was the biggest victim in the financial sector, slipping nearly 3% or 23.5p to 799p, while Legal & General was close behind, slipping 3p to 108.75p. BP was down 2% or 13p to 517p and Shell lost 10.5p to 466.5p. ICI weakened 7p to 257.75p and BG Group retreated 11.5p to 397.75p.
William Hill dominated corporate headlines afgter announcing it was in talks to buy 600 betting shops from Stanley Leisure.
William Hill shares were 14p lower at 559p following the news, while FTSE 250 Index stock Stanley surged 13% or 61.75p to 533.75p as analysts said the deal made the company more likely to merge it casino operations with rival London Clubs International.
Clothing group Monsoon was unchanged at 301p after announcing legal action against Primark for allegedly copying its products. Associated British Foods, which owns Primark, lost nearly 2% or 14p to 765.5p.
