The UK technology sector took another battering today and share prices turned from blue to red after...
The UK technology sector took another battering today and share prices turned from blue to red after CMG issued a profits warning with a knock-on effect for the entire FTSE market.
The FTSE 100 benchmark index lost 87.4 points or 1.7% to 5116 following an announcement from Anglo-Dutch firm CMG said second-half revenue from computer services in the UK will fall thanks to worsened business conditions last month.
Given that there is little to lift the markets at present, CMG hit all sectors because they have had either cancelled or postponed orders from the insurance, personal finance, transport and logistics industries. CMG is cutting 470 jobs or 3% or employees at a cost of £6.5m, to curb the losses.
British Airways has suffered yet another fall amid fears over slowing trans-Atlantic flights and the impact the anthrax scare will have on sales. BA lost 7.5% to 145.5p, which in turn sank several of the low-cost carriers further.
Technology firms in the US had little good news to spread today either, as reported earnings disappointed investors in Texas Instruments and Siebel Systems said its revenue has fallen for the first time since they floated in 1996.
The Nasdaq Composite index dropped 10.72 points or 0.4% to 1072.32 while the Dow Jones lost 37.44 or 0.4% to 9195.53 points.
The main flow of stock sales has been moving downwards largely because of more negative news about the spread of anthrax in the US. One employee of CBS News has also been diagnosed with skin anthrax today, following the 30 congressional employees who tested positive yesterday.
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