Vodafone profit warnings drive FTSE down

By MoneyhighStreet Staff. Published on July 22, 2008 This post currently has no comments.

Glasses on newspaper
London''s FTSE 100 index suffered heavy losses today (July 22nd), mainly driven down by profit warning from Vodafone.

The blue chip index closed down around 40 points at 5,365.

In particular, the markets were affected by losses sustained by mobile phone company Vodafone. The communications firm''s shares lost over 13 per cent of their value amid news that profits will be lower than expected when they are announced later this year.

The company''s shares closed down over 20 points at 129.

Earlier in the day, Jesper Kruger, a fund manager for ATP, explained to Bloomberg: "The Vodafone news is dragging markets lower.

"The telecom sector''s much- celebrated defensive qualities are being severely challenged."

However, news that several supermarkets were set to start a price war on petrol prices buoyed the affected companies.

Morrison said that it would be cutting prices at its pumps by 4p per litre and the news boosted its share prices by 1.42 per cent to 267 at the close.

Similarly, Sainsbury''s revealed a price cut of 5p per litre for customers spending more than £50 in store. As a result, its shares jumped 4.64 per cent to 310.