Footsie spirals downward as tech stocks suffer
Technology and telecom stocks are suffering a bloodbath as investors on the London Stock Exchange react to a raft of bad news overnight from across the Atlantic.
The Footsie index of 100 leading stocks is in a downward spiral after plunging 53.9 points in early trading. It now stands at 6144.0.
Investors are reacting to news including job cuts by Canadian firm Nortel Networks, which has halved its earnings forecasts, and the loss of 1,700 jobs at Texas-based computer group Dell as it trims its own profit forecast for the first quarter.
Leading the fallers in London trading is telecoms giant Marconi, which is off more than 8% or 53p at 550p.
Other stocks heading south include telecom equipment group Spirent, off 33½p at 454½p; Colt Telecom, down 58p at £14.12; and BT, dropping 17p at 573p.
Among technology stocks, computer services group Dimension Data is down 5% or 24½p at 440p; software group Sage is down 16½p at 326½p; and chip designer Arm Holdings is off 4% or 19½p at 423½p.
Autonomy is continuing its recent slide, falling a further 44p to £14.96.
With little corporate news to ease the tension, old economy stocks are heading the FTSE leaders board, with United Utilities up 7p at 613p; and supermarket chain Tesco ahead 2¾p at 267p.
Kitchenware firm Kenwood Appliances is up more than 15% or 13½p at 99½p after agreeing a 100p-per-share offer from Italian rival De'Longhi Pinguino.
However, Lloyds TSB, which has confirmed pre-tax profits of £3.9 billion, has slipped a marginal 14p to 699p.
