|
Bourses stuck in the doldrums
|
 |
May 5, 1999: 9:50 a.m. ET
European markets dip 1%, dragged back by tech stocks
|
LONDON (CNNfn) - Europe's principal stock markets all were about 1 percent lower by mid-session Wednesday. Investors took fright at the sell-off on Wall Street overnight and an uninspiring performance in Asia.
In London, the FTSE 100 index was down 74 points, or 1.1 percent, at 6,459.2, pulled lower by technology and growth stocks.
Frankfurt's Xetra Dax slid 51 points in early afternoon trading to 5,326.51, a decline of 0.95 percent. France's CAC 40 fell a similar percentage, or 41 points, to 4,397.48. Swiss stocks proved slightly more hardy, with Zurich's SMI easing just 30 points to 7,325.7.
The real story in London was pay-TV operator BSkyB (BSY). Third-quarter results were in line with expectations, but investors lapped up the group's aggressive push in its digital TV operations and plans to launch a free Internet access service. BSkyB stock surged almost 10 percent to 591 pence, casting a shadow over many of its competitors in the index.
The cable TV sector came under strong pressure as investors worried the groups could suffer from BSkyB's renewed attack. Telewest (TWT) slid more than 6 percent to 260 pence, and Cable & Wireless Communications (CWZ), the listed cable subsidiary of telecom group Cable & Wireless (CW.), slipped 6 percent. Electronics retailer Dixons (DXNS), which pioneered free Web access in Britain, slipped more than 5 percent to 1,268 pence.
Other growth stocks in London also took a pummeling as the market turned its attention to some recently overlooked sectors. Utilities stormed ahead, with Scottish Power (SPW) jumping 4 percent and water supplier Severn Trent (SVT) surging more than 5 percent to 878 pence.
Investors with an eye on Nasdaq's overnight tumble baled out of computer services groups Misys (MSY), down 7 percent, and Sema (SEM), down 6 percent at 557 pence.
The Paris market was in calmer mood, but most stocks traded in negative territory nevertheless. The recent bull run in oil titans Elf Aquitaine (PAQ) and Total (PFP) came to a sharp halt. Elf dropped almost 3 percent to 150.5 euros, and Total slid 4 percent to 126.8 euros.
The main casualty in Paris was tire maker Michelin (PML), which slid more than 3 percent to 42.5 euros after the European Commission took a dislike to the group's sales practices.
Disappointing first-quarter revenue figures at building materials giant Saint Gobain (PSGO) accounted for the stock's 3 percent decline.
In Frankfurt, first-quarter earnings from Deutsche Bank (FDBK) took center stage. A 36 percent jump in profit wasn't enough for some investors though, and the stock tumbled almost 3 percent by mid-session.
Chemicals giant Hoechst (FHOE) dropped almost 5 percent, as doubts over its planned merger with France's Rhone-Poulenc (PRPP) resurfaced. In Paris, Rhone shares dipped nearly 2 percent.
In Switzerland, CS Group came under pressure along with fellow bank UBS. CS Group slipped 4 percent to 294 Swiss francs, and UBS fell almost 2 percent to 513 francs. 
|
|
|
|
|
 |
|
