Sharewatch: Reuters Dives On City Concerns

Reuters was seen in focus, falling to levels seen last after the crash of October 1987. Persistent concerns over the effect of continued job cuts in the city and competition concerns were seen weighing on the stock, which was seen down 11.98%.

The media sector was under pressure yesterday as the London equity market slumped to a near 8 year low and war weary traders muted capitulation talk, suggested that shares may have finally bottomed out. However, bearish investors brushed off the suggestion, which has been raised continually over the past 2 years.

Elsewhere, BSkyB was also seen under pressure after the surprise news that the BBC is changing its arrangements with the group, ending its £85 million, five-year carriage agreement and effectively launching its own free-to-air digital satellite service (see BBC Terminates Sky Carriage Deal). The stock was seen down 5.42%.

The closing prices of media company shares on Wednesday were: