Logica shares slumped 18% today after the computer services group warned that it was feeling the pressure in one of its key divisions.
The group now looks certain to leave the FTSE 100 Index in the next quarterly reshuffle after its share price slumped 56p to 238p.
As well as cutting 700 jobs, Logica said that its mobile networks arm was struggling as customers become increasingly cautious.
The update did little for the confidence of the wider market as the FTSE fell 28.3 points to 5,169.3 in the first hour of trading.
Tech shares were leading the decline, with software group Sage off 8.5p at 186p and chip designer ARM Holdings down 5.5p at 227.5p.
Telecom stocks also failed to continue their recent progress as Vodafone eased 2p to 105.5p, mmO2 slipped 1.5p to 47.5p and BT Group lost 3.5p at 254p.
Among companies reporting today, satellite broadcaster BSkyB eased 10p to 732p despite reporting a rise in operating profits and a further increase in its subscriber base to 5.9m.
However, lastminute.com offered investors some cheer after it said it had reached operational profitability in the UK and France in the second quarter.
Shares rose 2.5p to 88p in early trading.
EGi News 10/05/02
