It does not mean Vince Cable was right to dismiss the Royal Mail share surge following its flotation almost a year ago as "froth", but the company’s shares have now closed below 400p for the first time.
The price, down 1.6p at 398.4p, is still above the 330p at which the government sold shares which prompted accusations the company had been sold off too cheaply. But it is well below the closing peak of 615p reached in January.
Since then the company has come under pressure thanks to growing competition in the UK mail market. But the most recent falls follow warnings from rivals TNT and UK Mail, as well as confirmation the government will investigate the UK postal market. Ironically this investigation came about because Royal Mail complained it had to provide a universal postal service to the benefit of its rivals. It is due to report interim results next month, with analysts expecting flat profits of around £230m.