Poor corporate news from Dutch electronics group Phillips irritated a glut of UK telecom and t...
Poor corporate news from Dutch electronics group Phillips irritated a glut of UK telecom and technology stocks, which led the FTSE 100 down this morning. FTSE 100 gains were few and capped at a miserly 1.5%.
At morning trade the FTSE 100 was down 34.4 points to 5482.7.
Philips unveiled a second-quarter loss of 770m euros compared to a profit of 3.6bn euros from the same period last year. Revenues dived 16% to 7.7bn euros and the company has had to absorb costs of 422m euros most of which regards job cuts. To worsen matters the group confessed it doesn't foresee a recovery in the semiconductor industry until next year.
Worst off among the FTSE 100 was Colt Telecom, down 30p to 308p followed by Energis, down 10.5p to 162p. CMG and ARM completed the top four losers with respective falls of 5.1% and 4.2%.
Royal Bank of Scotland was also on the losers board following news that its going to ask the market to help finance its $3.5bn planned acquisition of US based retail and commercial banking group, Mellon Financial. Shares lost 36p to 1494p.
Among the tiddlers, Netstore was a big early loser. The retailer of computer software services over the Internet confessed sales forecasts have been lowered due to the slow development of the Application Service Provider Market. It's a bad time to be showing the slightest chink in the company armour and the city responded brutally sending the stock crashing 7p to 14p.
Wall Street put on a miserable show yesterday as all the major indices fell. Chip equipment manufacturer Applied Materials blackened the mood after it admitted it doesn't see sales rebounding in the near future.
The Dow Jones slipped 66 points to 10472.12, the Standad & Poor's 500 lost 13 to 1202.45 while the Nasdaq posted its first loss in four sessions down 55 to 2029.
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