Telecoms equipment firm Marconi’s woes continued on the London market today, as the fallout from a broker’s downgrade showed no signs of letting up. Marconi’s share price tumbled to a four-year low yesterday in the wake of Credit Suisse First Boston’s research note.
The problems continued for the group today, as shares fell another 5%, or 13p, to 254.5p. The fall went against the overall trend for the FTSE-100 Index, which was ahead by 24.6 points, at 5,696.2, by mid-morning.
Even another tough session for tech stocks on the US-based Nasdaq Composite Index failed to dent confidence in London.
The Nasdaq lost 2% of its value overnight, but that had little impact in London, as high-tech shares took note of better than expected earnings figures from the US software group Oracle.
That helped lift computer services groups Dimension Data, up 9.5p at 291.5p, CMG, ahead 12.5p at 343.5p and Logica, up 23.5p at 848.5p.
With Marconi coming under pressure, a number of telecoms stocks appeared on the FTSE fallers’ board, including Cable & Wireless, down 17p at 401.5p, and Colt Telecom, 23.5p cheaper at 565p.
Software firm Misys also fell 24p to 470p, after announcing a deal to bolster its financial services division with the £75m purchase of rival DBS Management. DBS shot up by 99% – rising 72.5p to 145.5p. The offer values DBS shares at 150p.
On a quiet day for corporate news, banking stocks were among the sectors faring well. Halifax gained 10.5p at 800.5p, Lloyds TSB picked up 11p at 713p and Bank of Scotland rose 13p to 801p.
Outside the FTSE, computer services company Computacenter lost 15p at 335p, after announcing that sales in its second quarter had failed to match those of the previous three months.
Railtrack gained 6p to reach 329p, despite Lord Cullen’s criticism of the company in his report on the Paddington rail disaster.
EGi News 19/06/01
