$26 Billion UK Pounds Wiped Off Shares As Market Bloodbath Continues

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$26 Billion UK Pounds Wiped Off Shares As Market Bloodbath Continues http://www.excite.co.uk/news/news_story/news/news4.txt

1-5-2000

LONDON - More than #26 billion has beenwiped off the paper value of companies in the FTSE-100 Index as the markets suffer their second bloodbath in as many days.

After Tuesday's biggest one-day slide in the Footsie's 16-year history, it has now lost a further 130 points to close at 6535.9.

Investors sold off shares in technology and telecoms companies, locking in some of the enormous gains made last year. And falls on the technology-dominated US Nasdaq exchange were spurred by disappointing trading figures at online bookstore Amazon.com and caused much of the despondency.

Only last week, the Footsie finished 1999 on record highs of 6930.2.

Fears of interest rate rises in the UK and US alarmed investors, but analysts said the sell-off did not represent a bursting of the recent stock market bubble.

"It may do us a bit of good to clear the air for the New Year and get off the recent very high levels," said Simon Fine, head of pan-European trading at investment bank Dresdner Kleinwort Benson.

"We saw a lot of froth at the end of December and now people are starting to consolidate their positions."

Trading remained cautious with many of the large institutional investors still sitting on their hands until the full effects of the millennium bug have been seen.

Some of the biggest fallers included high street names such as media group Granada down 34p at 596p and giant mobile phones group Vodafone AirTouch 1414p lighter at 280p.

But the bulk of the losses was felt by technology companies such as CMG, down a thumping 471p at #38.50, microchip designer ARM Holdings 340p weaker at #36.69 and telecoms group Energis down 243p at #26.92.

-- (.@...), January 06, 2000


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