Fashionable internet stocks such as Last-minute.com have plummutted in value as traders rediscovered the 'old economy' companies.

Lastminute.com shares dropped from a high 487.5p to just above the 380p at which they started trading. The fall leaves the small investors who where allocated 35 shares each with just a few pounds' profit.

Abbey National, Royal Bank of Scotland and mining giant Billiton gained as technology stocks such as Misys and Sage dropped off. TechMark 100, an index set up to monitor hi-tech shares, dropped 300 points as the American Dow Jones Industrial Average enjoyed its largest points rise in its history.

City experts said internet and technology firms would continue to lose value. Justin Urquhart Stewart at Barclays Stockbrokers said: "We are going to see a lot more nervousness over the next few weeks."

He thought technology stocks could drop still further, although they should rise back again. "We have seen the peak in the short term," he said.

Neil MacPherson, group investment strategist at stockbrokers Brewing Dolphin Securities, agreed that technology stocks would continue to suffer. "The falls could continue through to the end of this quarter," he said. "But in the long term, the case for these companies remains very positive."

Traditional sectors such as manufacturing, food and drink and retailers have been neglected as insititutions and private investors poured money into internet and technology firms.

Last week ten new hi-tech firms pushed their way into the FTSE-100, forcing out utility companies, brewers and builders among others. The new entrants were among those who suffered. Telecommunications firms Kingston Communications and Telewest both saw their prices drop.

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