The turmoil in Iceland's banking system continued to cause chaos with Syndicate Asset Management slumping to a record low.

The specialist fund manager lost 34 per cent to 13½p on word that one seller was dumping shares at any price. That followed Syndicate's largest shareholder, Equity Special Situations, winning an interim injunction against Landsbanki over allegations that it had been selling ESS assets illegally.

Cape Lambert Iron Ore slipped 9.6 per cent to a nine-month low of 11¾p amid speculation that Frank Timis, the former boss of Regal Petroleum, may be angling to take a larger stake in the miner.

Mr Timis' African Minerals has an agreement to swap 30 per cent of its controversial Sierra Leone ore prospect for a 9 per cent holding in Cape Lambert, which has the option to buy the rest in stock or cash.

Cape quelled a rebellion over the deal by offering board seats to African Minerals and dissident shareholder Mick Shemesian. But other investors were concerned that recent developments have favoured Timis over steel group Evraz, Cape's biggest shareholder.

A "buy" recommendation from Novum Securities helped Dmatek , the technology group being bid for by LMS Capital. Dmatek rose 4.6 per cent to 137½p after Novum forecast 60 per cent upside even in the absence of a takeover.

Biotechnology group Renovo rose 9.3 per cent to 26½p after Goldman Sachs marked it as a likely survivor in research examining the sector's funding issues. It came to the opposite conclusion about Vernalis , off 2.1 per cent to 3¼p.

Ennstone , the aggregates firm facing a bid from Marwyn Materials, lost 15.2 per cent to 7p after activist investment group Guinness Peat was able to pick up 4.45m shares at 6½p apiece.

SCI Entertainment rallied 6.7 per cent to 20p after KBC Peel Hunt cleared an overhang of stock previously held by Kaupthing on behalf of Robert Tchenguiz.