London's FTSE 100 index is down sharply by more than 50 points this morning to about 5,022 after dis...
London's FTSE 100 index is down sharply by more than 50 points this morning to about 5,022 after dismal telecoms news from FTSE 250 constituent Energis yesterday and a sharp downturn in leading New York indices.
Energis fell as low as 5p yesterday after falling off a cliff when it hinted that the business might be wound up if its bankers could not be persuaded by its restructuring plan.
Although it is not in the FTSE 100, Energis continued move down, off another 1.75p to 2.25p today, marks the first total collapse of a big telecoms outfit that many see as the start of further consolidation in the sector.
Yesteday's profits warning from Colt Telecom didn't help, and other FTSE 250 telecoms-linked stocks Thus and Marconi are also being dragged down sharply today.
That has also dragged FTSE 100 constituent Vodafone down 4p to a new new 3-year low of 127.75, BT Group down 1.5p to 247.5p, and MmO2 down 0.25p to 63.5p.
With the Dow Jones Industrial Average heading south by 106.49 points to close at 9,834.68 and Nasdaq's Composite index down by 59.23 points to 1,716.34, it is not surprising UK investors are heading into defensive stocks.
Rickett Benckiser leads the gainers with a 20p rise to £11.22, followed by Innogy - up on bid speculation - up 3.25p to 253.75p, Smith & Nephew up 4.25p to 404.25p, Shire Pharmaceuticals up 8p to 763p, and Alliance & Liecester up 9p to 840p.
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