For the first time in 5 years the FTSE dropped more than 20 per cent below its historic peak on Tuesday 8th July
The FTSE feel to just 5358.7 well below June 2007’s peak of 6732, thus entering bear territory where investors lose confidence in prices. This is the opposite of a bull market where trading confidence sees trading increase on the promise of future gains.
As shares crashed the British Chamber of Commerce warned a recesssion could be likely.
Amoung those most hit were the troubled bank Bradford & Bingley whose shares hit new lows of 34p well below its planned rights-issue price of 55p, and Moneysupermarket.com whose shares slid 17 per cent as it issued a trading statement warning revenues would be down £7 million following the withdrawal of Firstplus from the mortgage market.