DSG International , the parent company of Currys and PC World, slumped to a fresh low as the cost of insuring its debt spiralled and rumours swirled of tough trading and further problems with credit insurance.

Its shares closed 31.3 per cent lower at 11p, as traders learnt that the cost of insuring €10m (£8.4m) of DSG bonds against default over a period of five years was an up-front payment of €3.3m and then annual payments of €500,000. Traders said the cost of DSG's credit default swaps reflected the problems at Woolworths , down 38.3 per cent at 2.35p, rumours that sales at DSG had fallen significantly during November and fears that credit insurers would no longer provide cover for suppliers.