Stocks tumble as index hits new low

The Accountancy Age/ADVFN index closed on Thursday at a new low of 62.93 points dropping 3.87 points and creating a new yearly low. The negative mood was also seen in the benchmark FTSE-100 index which fell 3.55 points to end the week at 84.78 points.

Recruitment firm Michael Page plunged 11% on the week, hit by unfounded rumours of a profit warning.

Last Wednesday, shares fell 7.5p to 164.5p but the company recovered slightly on Thursday after analysts said the drop was ‘overdone and nothing had changed since last month’s trading update.

The software and computer services sector continued to fare badly as Logica slid 9% on news that competitor mmO2 is launching new services.

Competitors ITNet and Capita also fell and Xansa lost 9% after announcing HBOS bank would end its joint venture with the IT company.

Mysis was the only winner this week, gaining 4% after an upbeat trading statement.

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