Feeds

Roundup: UK markets on 2 October

London follows Wall Street with series of falls

  • alert
  • submit to reddit

Internet Security Threat Report 2014

There were some spectacular falls on the London market on Friday, which was reacting to overnight falls on Wall Street. The FTSE was off three per cent, but the technology sector suffered badly. The UK IT sector as a whole was down 14 per cent on the day. The main reason seems to be the weakness of banks and the fact that they are the biggest customers for custom software. Gold pulled past $300 again. In the case of Misys, bank-related business is more than 50 per cent, for Sema and Logica it is around 25 per cent. Misys' fall of 26 per cent was encouraged because Merrill Lynch downgraded Misys, the biggest company in the sector. It does seem that the reaction was extreme, since around 30 per cent of Misys' income is from software licence fees and it is all but impossible for the banks to exist without Misys software. Sema's 23 per cent fall was equally ridiculous since it derives much of its income from multi-year outsourcing contracts which cannot be cancelled without penalties -- assuming Sema performs, of course. Announcing contracts did not help either FI or Logica. FI, a programming operation with an Indian subsidiary, was down 18 per cent despite its £20 million London Electricity contract, while Logica did not profit from the announcement of a £15 million contract with Shell UK Exploration, but perhaps it was a reaction to the previous day's news that it was acquiring the US-based Carnegie Group for $35 million. London Bridge Software was down 15 per cent, CMG fell ten per cent, and Sage was down nine per cent. ® See also US markets on 2 October Click for more stories

Choosing a cloud hosting partner with confidence

More from The Register

next story
WHY did Sunday Mirror stoop to slurping selfies for smut sting?
Tabloid splashes, MP resigns - but there's a BIG copyright issue here
Spies, avert eyes! Tim Berners-Lee demands a UK digital bill of rights
Lobbies tetchy MPs 'to end indiscriminate online surveillance'
How the FLAC do I tell MP3s from lossless audio?
Can you hear the difference? Can anyone?
Google hits back at 'Dear Rupert' over search dominance claims
Choc Factory sniffs: 'We're not pirate-lovers - also, you publish The Sun'
While you queued for an iPhone 6, Apple's Cook sold shares worth $35m
Right before the stock took a 3.8% dive amid bent and broken mobe drama
Inequality increasing? BOLLOCKS! You heard me: 'Screw the 1%'
There's morality and then there's economics ...
prev story

Whitepapers

Providing a secure and efficient Helpdesk
A single remote control platform for user support is be key to providing an efficient helpdesk. Retain full control over the way in which screen and keystroke data is transmitted.
Intelligent flash storage arrays
Tegile Intelligent Storage Arrays with IntelliFlash helps IT boost storage utilization and effciency while delivering unmatched storage savings and performance.
Beginner's guide to SSL certificates
De-mystify the technology involved and give you the information you need to make the best decision when considering your online security options.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.
Secure remote control for conventional and virtual desktops
Balancing user privacy and privileged access, in accordance with compliance frameworks and legislation. Evaluating any potential remote control choice.