Footsie flags as gloomy mood prevails

The London market has got off to a gloomy start, with tech and telecoms stocks leading the fall.

By 9am, the Footsie index of 100 leading stocks was off 40.7 points at 5420.9, dragged down after the Dow Jones Industrial Average and the tech-laden Nasdaq ended their sessions in the US overnight on the back foot.

In London, telecom stocks heading south include Energis, off 3¼p at 91p; Colt Telecom, down 8p at 275p; Cable & Wireless, off 5½p at 327½p; and BT, down 6½p at 441½p.

Troubled telecoms equipment group Marconi is continuing its downward trend, falling 1¼p to hit 70½p.

Tech stocks are also feeling the pinch, with software groups Misys and Sage off 10p at 340p and 5¼p at 201½p respectively; computer services firm CMG down 7p at 240p; and chip designer ARM Holdings sliding 7¼p at 282p.

Also down is advertising group WPP, which has announced it's in talks to launch a counter bid for the Tempus media buying agency. Tempus, which last month said it would be taken over by French firm Havas Advertising for £425m, slipped 2½p at 587½p.

But Asda Property has seen its share price increase by 9% or 26p to hit 302½p after a joint venture between Asda's chairman and British Land fielded a £231.7m bid for the group.

Online retailer lastminute.com has edged up ¼p to 34½p after unveiling strong third-quarter figures and saying it was on track to move into profit next year.