Gcap Media , the owner of Capital and Classic FM, sank to its lowest level since the company was formed by the merger of GWR and Capital in May 2005.

Its shares, already down 40 per cent since August, lost a further 7.8 per cent to 127¼p after UBS advised clients to keep selling. The broker said it was worried about the possibility of a significant slowdown in consumer spending. "This could have a material impact on advertising spending and this risk is likely to weigh on the shares in the coming months," said Alastair Reid, analyst.