UK Stocks Down on Global Tech Sell Off

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UK Stocks Down on Global Tech Sell Off

Technology stocks fell on Friday as UK’s benchmark equity gauge took a heavy toll from a global sell off of shares that sent it spiraling towards its biggest weekly decline in nearly a month.

The blue-chip FTSE 100 index, which added 14.4% in 2013 and surged in January this year towards its highest level since 2000 stood at 6,954.49 points in early trading, after losing 0.7% or 47.48 points. The index is approaching a weekly drop of 1.8%.

A broader measure, FTSE All-Share Index, slid 1.1% on Friday as the ISEQ Index of Ireland flopped 1.2%.

A measure of technology shares recorded the biggest loss of the 19 industry groups in Europe’s Stoxx Europe 600 Index, expanding its weekly loss to 3.8%, as Bloomberg reports.

ARM, Sage and other technology firms comprise of some of the worst-performing shares on the FTSE, as they lost amid a 3.1% plunge overnight of the Nasdaq index, a US technology-dominated stocks gauge.

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ARM, which designs chips for many smartphones, lost 3.8% to 966 pence as software maker Sage slid 2.5%.

“I would leave ARM well alone for now. I’d be happy to see it drift down to 930 or 910 pence before phasing back into the stock,” Basil Petrides of Beaufort Securities said.

The fall of the index on Friday sent the FTSE below its moving average for 200 days, which technical traders flag as an indicator of further declines in the near future.

According to technical strategist Adrian Slack of APS Alpha in London, a fall of the FTSE below 6,540 points could pave way for a further plunge to the 6,393 point level. Late in March, the FTSE slightly bounced back after hitting the 6,540 points mark.

“I’m not as bullish as I was before. It’s a ‘sit-on-your-hands’ type moment for the market at present, and I think we may tread water for a bit,” Slack told Reuters.

To contact the reporter of the story: Jonathan Millet at john@forexminute.com