The FTSE 100 fell again as soon as the market opened on Wednesday morning, led by GlaxoSmithKline, a...
The FTSE 100 fell again as soon as the market opened on Wednesday morning, led by GlaxoSmithKline, as investors showed concern about the lack of new products in the pipeline at the world's second-biggest drugmaker.
The FTSE 100 dropped 30 points or 0.8% to 3991.9 points, bringing this year's decline to 24 percent and Glaxo dropped 38 pence or 3.3% to £11.09.
The company is said, according to the Guardian, to have lost three scientists it had hired just over a year ago to head new drug discovery units.
The stock yesterday already tumbled to their lowest level in five years after rival Novartis began selling a generic copy of Glaxo's $2 billion-a-year Augmentin antibiotic earlier than analysts expected.
AstraZeneca, Europe's No. 2 pharmaceutical company, dropped 83p or 3.6% to £21.98.
Some of this negative activity may partly be the result of another loss in the US stock markets yesterday, influenced by the Federal Reserve Chairman Alan Greenspan's criticisms of corporate accounting, and suggestions that these "misdeeds" by corporate executives threaten to undermine consumer confidence.
The Dow Jones Industrial Average fell for a seventh day, its longest losing streak since September as the index slid 166.08 points or 1.9% to 8473.11.
Wal-Mart Stores had its biggest one-day loss in 19 months.
The Standard & Poor's 500 Index also dropped 16.99 points or 1.9% to 900.94, as consumer stocks contributed almost half the loss, and the Nasdaq Composite Index erased a gain of 1.8%, slipping 7.36 points or 0.5% to 1375.26.
Better-than-expected earnings at Merrill Lynch & Co. and General Motors, as well as rising profits at Johnson & Johnson, failed to lift indices. Growth Forecasts.
The benchmark S&P 500 is at its lowest since 1997 having now lost 21.5%t in 2002.
Things fared better in the Asian markets, as Japan's Topix technology stock index managed to rise and head off a drop to its lowest level in five months, as companies that rely on domestic sales such as NTT DoCoMo surged in the last 30 minutes of trading.
The Topix rose 3.57 points or 0.4% to 988.10, after falling 1.1% to its lowest level since February 20, and the Nikkei 225 added 45.60 points or 0.4% to 10,296.02after the Bank of Japan, in the last hour of trading, signalled the economy is moving closer toward a recovery.
Elsewhere, Taiwan Semiconductor Manufacturing. led the TWSE Index down 1.3% after Intel - in the US - reported losses. The world's biggest maker of customized chips counts Intel among its customers. Singapore's Creative Technology and Venture Corp led the Straits Times Index down 0.6%.
Hong Kong's Hang Seng Index shed 1.6% to an eight- month low, led by shares of HSBC Holdings and other companies which have businesses in the U.S.
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