Telecoms and banks push market down further
The FTSE-100 Index of leading stocks has plunged again, as telecoms and banking stocks pushed the market to its lowest level for 16 months.
By lunchtime, the Footsie was also near its low point for the session, off 77.9 points at 5925.2 points.
Investors and traders are selling banking stocks after Trade Secretary Stephen Byers' decision to refer Lloyds TSB's proposed £19 billion takeover Abbey National to the Competition Commission.
The decision means any takeover is up in the air until at least June, when the commission is due to report, and the uncertainty sent shares sharply downwards.
Lloyds TSB fell 17½p at 624½p, while Abbey was off 41p at £10.98.
The decision is also likely to put intense pressure on Abbey to conclude its merger talks with preferred partner Bank of Scotland, which was off 12p at 736p.
Other financial stocks are also losing ground, with Barclays, down 54p at £21.76 and HSBC off 10p at £10.20 .
After a traumatic week, the attention of City traders will now switch to the opening of the US markets later this afternoon.
Yesterday saw the technology-dominated Nasdaq fall to a 25-month low and further falls are likely to dent already fragile sentiment still further.
Telecoms were feeling the heat, amid concerns the roll-out of third generation mobile phone technology could take longer than planned, leading to greater than anticipated debts. BT was off 13p at 592p, Vodafone was down 4¾p at 184¾p and Colt Telecom was off 7%, or 95p, at £12.70.
