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FTSE's new start hits Sema
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September 20, 1999: 6:40 a.m. ET
U.K. software group suffers sharp stock fall as Euro exchanges switch to earlier open
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LONDON (CNNfn) - British software firm Sema Group became the first casualty of the new trading regime on the London Stock Exchange (LSE) Monday as its shares collapsed in an erratic early session.
London, Paris and five other bourses shifted the start of their trading day back one hour to 0800 GMT - in line with Frankfurt and Zurich - as part of moves to harmonize the region's equity markets.
However, the move led to some volatile trading in thin volumes, a problem which had marred an attempt last year by the London exchange to extend its opening hours.
Shares in Sema (SEM), one of three new entrants to the FTSE 100 benchmark index, opened Monday 98 pence or 12.7 percent below Friday's close as a series of low trades sent the stock spiraling. The stock later recovered to trade off 0.7 percent at 757 pence.
The London Stock Exchange reported 79,000 trades in the first hour Monday, in line with volumes when it opened later.
Market participants had reported problems with the Sets trading system when it moved its start from 1000 GMT to 0930 last year, with scarce volumes prompting wild swings in some shares.
Accounting software producer Sage Group (SGE) and insurer Old Mutual (OML) both fell on they also made their debut in the FTSE 100. Sage lost 0.76 percent at 2,862 pence and Old Mutual, a South African-based firm which listed in London in July, was off 1.1 percent at 132 pence.
The nine European bourses plan closer harmonization, and will make an announcement about the state of progress in their drawn-out negotiations within two weeks, according to an LSE official. 
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London Stock Exchange
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