The FTSE 100 leaked value again today, punctured by bad news for, you guessed it, telecoms and techn...
The FTSE 100 leaked value again today, punctured by bad news for, you guessed it, telecoms and technology stocks.
Little to cheer about among the distinctly old economy bunch of gainers who could only manage a top gain of around 5.9%.
The FTSE 100 finished the day down 76 points to a lowly 5391.9.
Leading the fallers was computer services groups CMG. The stock weakened under the growing consensus that the severe slowdown in the sector will further hurt the group's performance. Broker Goldman Sachs reduced its estimates for CMG today as well as its peer Logica. CMG lost 26p to 229p while Logica fell 30.5p to 675.5p.
Commenting on the technology outlook, some city pundits are going as far as to recommend that chip manufacturer's shares be completely scrapped from portfolios. They argue that until a sufficient level of consolidation is underway, they're not worth holding.
Just what the telecom sector didn't need today was news that the European Commission is raiding UK and German mobile phone operators to assertion whether they have worked together in illegal price fixing for roaming charges. Vodafone was hit for 8.75p to 145p.
HSBC was at the receiving end of city whispers today. The bank has refused to comment on rumours that a profit warning is on the near horizon. Adding to concern, Deutsche Bank cut its recommendation to market underperform from market perform. The shares dropped 30p to 777p.
Technology business Psion confirmed that its brought the axe down on this year's second half launch of Bluetooth wireless products. Furthermore it plans to restructure Psion Digital due to the division's poor performance. The glum news failed to rattle the stock significantly and it shed 1p to 70p.
One of the biggest results announcements for the week came from Marks & Spencer. As expected, they weren't too encouraging. Sales for the 14 weeks to July 7 were 2.6% lower than the same period last year. The stock weathered earlier falls of around 10p to finish the day slighter lower off 0.5p to 248.5p. Supporters pointed out that despite the slump in sales gross margins had improved.
At midday on Wall Street a poor open was showing signs of a recovery but all the major indices were marginally lower. Bargain hunting seems to have prompted the lion's share of buying. The Nasdaq, threatening to make its sixth fall in seven sessions, was down 14 to 1948, the Dow Jones slipped 21 to 10154 and the Standard & Poor's 500 lost 9 to 1171.
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