Telecoms hit badly as Footsie falls steeply

Few shares in the FTSE 100 Index have made any headway as the index tumbles towards its lowest close for nearly three years.

Footsie is now off 93.1 points at 5222.9, with the City hoping for a boost from the US markets later on this afternoon.

Marconi has plunged a further 9%, or 3½p to just 34½p, as investors reacted to Tuesday's profit warning and a downgrade from credit agency Standard & Poor's.

There is also little impetus in the way of corporate and economic news to boost investors' flagging spirits in the City.

Full-year results from Diageo disappointed with profits at its Burger King restaurant chain down 12%.

The group, whose premium drinks brands nevertheless continue to perform well, has fallen 7½p to 697p.

And figures from the Office for National Statistics showed the weak hi-tech and telecom sectors are pushing the manufacturing sector deeper into recession.

The Bank of England's widely forecast decision to leave interest rates on hold had already been priced into the market.

Telecoms is the worst hit sector, with Telewest down 10% or 4¾p to 40¾p, while Energis has dropped 5¼p to 74½p and Spirent fell 9¾p to 117p.

Also on the slide are Colt Telecom, down 7p to 179p, BT off 23½p to 371½p, and Vodafone down 4¾p to 138p.

Tech stocks are also heading south, with CMG and Logica off 13½p and 10p to 238p and 728½p respectively.

Old economy stocks have not been spared with Kingfisher, off 18¾p to 324p, British Airways, down 9½p to 281¼p and Prudential, off 37½p to 816p.