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.
The Nasdaq composite index is widely regarded as the world's leading barometer of technology stock health. Following Wednesday's decline, the index is now 25 per cent below last month's peak and has confirmed that Nasdaq is in the grip of a bear market.
In Britain, the Techmark 100 index has already suffered badly with its shares hit two days in a row, again reflecting the bloodletting of US technology stocks. Prominent among Wednesday's casualties were auction house QXL.com, Logica and BSkyB.
Flotations also had a bumpy ride, with Netstore - the shares for which start active trading from next Wednesday - forced to lower its issue price to 150p, compared to the minimum 180p originally envisaged.
One of the few companies to escape the gloom was Bookham Technology, whose shares shot up to £32.12 ($49.14) - more than triple its Tuesday launch price. The company, which manufactures, designs and sells components for telecoms equipment, is backed by both Intel and Cisco, with each holding a 4.8 per cent stake.
The meteoric rise of Bookham's shares has made its founder Andrew Rickman, 39, an internet billionaire, joining the likes of Mike Lynch of Autonomy. Both men have science doctorates and have built their companies on developing core technologies, unlike other dotcoms where the emphasis is on marketing and which have fared badly as the Nasdaq index continues to nosedive.
This story has been republished from uk.internet.com
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