Falling banks and telecoms companies have dragged Britain's FTSE 100 index to another 11-week lowwith market sentiment hit by more poor corporate news.
By noon the blue chip index was down 116.3 points or two per cent at 5,545.6, bouncing feebly from a session low of 5,537.3 - its lowest since April 5th.
Investors ditched recently strong banks, knocking HSBC 3.4 per cent lower to 824p and Royal Bank of Scotland 3.7 per cent to 1,630p. The banks as a group sliced 33 points off the FTSE, while telecoms took off 27 points as Vodafone subsided 3.5 per cent to 144-3/4p.
Former market star performer chip designer ARM Holdings was a major FTSE loser. Shares in the Oxford based company plunged by 11 per cent to 231p, hurt by a warning from US firm Applied Micro Circuits that its earnings would miss expectations because of waker demand.
Software groups, such as CMG down 14 per cent at 263p and Logica off 10.6 per cent to 808p, reeled after Cap Gemini Ernst & Young of France cut its sales outlook.