City screens turn red
Two hi-tech companies have dealt another blow to jittery London markets.
The FTSE-100 Index of leading stocks has fallen 130 points, meaning that it has lost more than 300 points since Monday morning. It now stands at 5593.7.
Compaq and software group Oracle are to blame for today's falls.
Compaq announced it is to cut around 5,000 jobs worldwide, while software group Oracle said the downturn in IT spending was worse than expected.
Their statements come after Cable & Wireless, Ericsson and Motorola all warned of tough trading conditions earlier in the week.
Tech and telecoms stocks are suffering. Software group Sage has lost 12% of its share price, and Logica has dropped 141p at £11.84. Vodafone is also off 7¼p at 200¾p.
City experts are warning that the market, which is already at its lowest point since December 1998, is poised to fall further.
Justin Urquhart-Stewart, of Barclays Stockbrokers, said: "There's no obvious sign of a trigger for a recovery at the moment."
He added developments in the US over the next few days would be key: "We've got this big fog bank in front us at the moment and we just don't know what's going to happen."
Retail stocks are gaining as investors looked for refuge from the hi-tech fallout. With yesterday's retail sales figures also boosting confidence, Boots is ahead 6p at 593½p, Safeway up 4½p at 299½p and Marks and Spencer 8¾p stronger at 221¾p.
And energy stocks also seem a safe haven, with Scottish Power ahead 3½p at 480½p, and PowerGen stronger by 1½p at 681½p.
