The FTSE 100 Index slumped more than 100 points in early trading today, as London shares caught up with falls on international exchanges this week.
After an hour’s trading, the FTSE had shed 105.2 points to slide below the key 5,000 mark at 4,979.9.
Traders returned from two days of holiday celebrating the Queen’s Jubilee to react to sharp falls on Wall Street, where the Dow Jones Industrial Average has slid heavily this week.
Sentiment has been hit by worries over US conglomerate Tyco International – the firm’s former boss was yesterday charged with tax evasion – and a profits warning from electronics firm Flextronics.
European exchanges have also taken a battering, with telecoms firms sharply down.
Mobile equipment maker Ericsson yesterday told the Financial Times there was a risk there would be no improvement in market conditions next year.
In London, Vodafone fell 4%, off 4p at 99p, mmO2 slid 7%, or 3p to 39.5p and Cable & Wireless lost 9.5p at 200p.
Among the tech stocks, IT services group Logica fell 9p to 212.5p, software group Sage shed 9p at 166p and chip designer ARM was down 7p at 179.5p.
Oil companies were also sharply lower, after a US report showed a surprise rise in crude oil stocks.
Shell was down 17p at 513p while BP fell 19.5p at 565.5p.
Just eight companies from the FTSE 100 managed to post rises in the first hour of trading, with brewing and mining firms ahead.
South African Breweries rose 17.5p to 593p and Scottish & Newcastle was up 3.5p at 652.5p, while Rio Tinto rose 16p to £13.18 and Anglo American was up 18p at £12.58.
EGi News 05/06/02
