Shares fall 'worst since September'

By SIMON WATKINS FOR THE MAIL ON SUNDAY
Updated:

 

THE stock market is about to plunge to levels not seen since the dark days of last September, according to analysts. The FTSE 100 index was sent reeling last week by slumps in the US markets, breaking out of its recent trading range - but not in the direction everyone hoped.

It closed at 4920 on Friday, down 165 points on the week, but at its worst it hit a low of 4851. Analysts fear that now the market has slipped below 5000, it could fall as low as 4500 before it recovers.

Richard Lake, technical analyst at stockbroker Brewin Dolphin, said: 'Overall, a return to 4750 or possibly 4500 now seems quite likely.' That would put the Footsie within a whisker of the low of 4434 that it hit after September 11.

In America, the Dow Jones Industrial Average ended the week down 336 points at 9589, its lowest since mid-November. The worst drops came after computer chip maker Intel cut its revenue expectations.

Robert Kerr, strategic analyst at Bank of America, said: 'The fact that one company can have such an effect on whole markets shows how volatile everything is.'

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