Negativity hits stocks.

Negative news has hit accountancy-related stocks, causing the majority of shares to slide below last week’s levels, writes Adriana Zea.

After a strong start to the week, the Accountancy Age/ADVFN index dropped back to 70.72 points, down 2.41 points on the last close, mimicking the FTSE, which fell to 93.87 points.

Leading the losers as the recruitment sector is hit by the economic downturn, was Reed Executive, which fell 9%.

After rising steadily on positive comments from brokers, Xansa’s share price fell 5% following a statement, which disappointed market watchers.

Software specialists Logica and Misys fell 4% as Merrill Lynch slashed earnings forecasts for the sector. Capita Group lost 3% after its talks with the London Borough of Croydon collapsed.

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