Stockwatch Daily: Telcos take a tumble

Just for a change...

Telecom stocks took a tumble this morning after Marconi suspended FTSE trading in advance of a statement due this afternoon. The company is expected to issue a profit warning after Morgan Stanley warned yesterday on the company's share value. Alcatel, Ericsson and Nokia all dropped. Alcatel was down 5.45 per cent after 9.30am, with Nokia falling 2.48 per cent and Ericsson down 3.28 per cent. Philips fell 2.36 per cent after buying Marconi's medical division in a $1bn deal. Across Europe, indexes were also down as the US markets close for today's Independence Day holiday. The FTSE fell 0.56 per cent with the CAC 40 down 0.65 per cent and Frankfurt's Dax down 0.27 per cent.