Telecoms fall hits Footsie

The FTSE 100 Index has closed down 91.7 at 5137.4 - its lowest level for six weeks.

Its fall came as investors deserted the telecoms sector.

There is bad news for Irish shareholders also as Vodafone plunged 7% to its lowest level in four years.

Oil and banking stocks were unable to offer any support as the London market matched losses on the other side of the Atlantic.

A mixed trading update by General Electric saw the Dow Jones Industrial Average fall by 100 points in early trading on Wall Street.

Tom Hougaard, trader at City bookies Financial Spreads, said: "People are simply running scared of telecoms.

"Telecom firms will still be here in ten years' time but these are bad businesses for the time being as they have such large debts."

Vodafone dropped 8½p to 111½p, leaving it perilously close to its low of October 1998 when it hit 108p.

The depressed sentiment in the telecom sector was also affecting Vodafone rival mmO2 - off more than 11%, or 7p, at a new low of 54p.

Cable & Wireless was also caught in the fallout, dipping more than 7%, or 15p to 190p, while BT Group lost 16¼p to 256¾p.