London Stock Exchange (LSE) chiefs have yet to give a full explanation of what caused their computers to crash on Wednesday, but at least the failure gave some reprieve to hi-tech stocks that were otherwise in line for another hammering.

Those who have made windfalls on spectacular dotcom rises in the past 12 months could be particularly hit, given that they might have wanted to sell certain stock on Wednesday - the last day of the financial year - to minimise tax liabilities.

Ironically, the systems failure provided something of a relief to hi-tech companies whose counterparts on Nasdaq had received a hammering during the previous few days because of the court ruling which found that Microsoft had abused its monopoly power.

On Tuesday, trading on Nasdaq again saw hi-tech shares plummet, with dramatic 15 per cent swings. The LSE was likely to follow suit Wednesday before the crash saved its technology stock by the bell.

However, in an interview with the BBC, LSE chief Gavin Casey refuted suggestions that the crash was tantamount to a "fiasco". Instead, he said it was a very considerable disappointment "which we regret greatly".

Once the fault was finally fixed, the FTSE 100 fell some 120 points to 6307 - its lowest point for more than two months.

So far, the LSE has given little explanation of what happened on Wednesday, except to confirm that it suffered a fault in its electronic feed to dealers. A spokesman described the problems as "technical" and involved corrupt data.

In the meantime, the US markets have calmed down, with a rally in the hi-tech sector. Crashes permitting, UK hi-tech stocks should now escape much of the savaging that their US counterparts have received this week.

This story has been republished from uk.internet.com

See also:

FTSE to launch tech stock indicies

Investors following the fortunes of European technology stocks will be able to track share prices through a series of 11 share indices under the FTSE eTX label.  07 Sep 2000

UK shares tax policy under fire again

A recent spate of IT companies reversing their decision to invest in the UK means that the government's ecommerce plans could be a long time coming.  03 Aug 2000

UK share ruling will hit hi-tech staff

Employees of hi-tech companies who make a killing when they cash in their share options but leave their firms with crippling National Insurance (NI) bills could soon be forced to pick up the tab.  25 Apr 2000

Stock dive hits more IPOs

Television web portal Yes TV has become the latest victim of the recent heavy share falls on the US and European stock markets.  17 Apr 2000

Hi-tech stocks take another tumble

UK technology stocks took another pounding during early trading on Thursday, reflecting massive falls the day before on Nasdaq. The index fell seven per cent, the second largest drop in its history.  14 Apr 2000

Investors in e-wonderland?

Ecommerce economics are not as unfamiliar as they appear.  11 Apr 2000

Stock quote information anytime, anywhere

Consumers worldwide can now receive instant stock quote information in a voice message sent to any phone, mobile, pager or Wap based device.  07 Apr 2000

City trading paralysed by computer glitch

A computer systems problem is being blamed for paralysing the London Stock Exchange (LSE) for several hours today - the last day of the financial year.  05 Apr 2000

Stock Exchange warned on 'risky' dotcom quotes

The London Stock Exchange (LSE) is being urged not to give risky hi-tech companies quotes which could harm its own and the IT industry's reputation.  03 Mar 2000

Stock Exchange launches new technology market

Techmark will link companies across markets.  27 Sep 1999

Like this story? Spread the news by clicking below:

 del.icio.us     Digg this     reddit!