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London FTSE ends higher
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March 31, 2000: 1:44 p.m. ET
Europe's top bourse ends 4-day slump; Frankfurt, Paris can't hold gains
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LONDON (CNNfn) - Britain's stock market snapped a four-day losing streak Friday, powered by old-time energy and tobacco issues, as Paris and Frankfurt weakened again amid lingering softness for once high-flying technology and media stocks.
London's benchmark FTSE 100 rose 1.3 percent to 6,526.7. After nosing into positive terrain Friday afternoon, Frankfurt's Xetra Dax fell 0.6 percent to 7,599.39 and Paris' CAC 40 blue chip index lost 0.4 percent to 6,286.05. Zurich's SMI added 0.6 percent to 7,438.1.
For the week, the Dax lost 4.2 percent, the FTSE fell 2.9 percent, and the CAC, which opened the week with a string of three days of gains, dropped 1.2 percent.
European markets fell victim to global jitters about highly-valued technology, with the leading three bourses staggering mid-week as the tech-heavy Nasdaq composite index on Wall Street suddenly tumbled into a correction - defined as a drop of 10 percent or more from all-time highs.
Instead, it was "old economy" stocks that fared well, as investors tinkered with their portfolios to brace for softness in techs. Friday's session was led by gains in energy, tobacco, mining and paper-products stocks while select retailers, technology firms, and companies slumped.
A burst of energy for FTSE
Among the leaders in London were oil companies BP Amoco (BPA), up 5.7 percent, and Shell Transport and Trading (SHEL), which rose 5.5 percent.
Investors lit up shares of British American Tobacco (BAT), which jumped 9.8 percent in the wake of gains for leading U.S. tobacco stocks Thursday. Analysts said Florida could enact legislation that could derail a successful lawsuit brought by sick smokers in Miami, which threatened cigarette makers with potential damages worth billions of dollars.
On the downside, Scottish telecom operator Thus (THUS) plunged 16.4 percent after Goldman Sachs cut its target for the company's share price to 700 pence and reduced its estimate for 1999-2000 earnings to £215 million ($343 million) from £230 million.
Britain's No. 2 cable operator Telewest (TWD) fell 9.4 percent.
On the deals front, shares in Dorling Kindersley (DKN) rose 3.3 percent after media company Pearson (PSON) agreed to buy the ailing publisher of illustrated books for £311 million ($496 million) in cash. Pearson, which publishes educational books and newspapers including the Financial Times, roared up 5.9 percent.
Carrefour at a crossroads
Shares in French energy and transport-equipment company Alstom (ALSO) blasted up more than 20 percent - a leading gainer among Europe's blue chips - after agreeing to buy the 50 percent of joint venture ABB Alstom Power that it does not already own for  1.25 billion ($1.2 billion).
Investors wanted a refund from major French retailers. Carrefour (PCA) tumbled 10.7 percent after the company predicted 20 percent growth in earnings for 2000 - below analysts' estimates. Analysts at Merrill Lynch and Cheuvreux cut their ratings on Carrefour stock.
Fellow retailer Pinault Printemps Redoute (PRR) shed 2.7 percent and Casino (PCO) fell 0.6 percent.
Pay-TV company Canal Plus (PAN) slumped 4.6 percent, after being briefly halted at limit-down for a second consecutive day. Dutch-based data network operator Equant (EQU), which has a share listing in Paris, fell 8.6 percent.
In the market for initial public offerings, online classified ad company Trader.com fell 23 percent to 23.3 after it first sold shares at 30, at the top of its expected range. Shares Trader.com, which is 29 percent owned by the French holding company CGIP (CGW), also makes its debut in New York on Friday. CGIP fell 6.7percent.
Oil companies and banks did well in Paris, with Total Fina Elf (PFP) rising 1.6 percent and Société Générale (PGLE) gaining 4.7 percent.
Carmaker Renault (RENA) gained 4.6 percent following reports the company is in talks to sell its truck-making business to Sweden's Volvo.
Germany ends modestly lower
While France's retailers were ailing, Metro (FMTO) of Germany spurred the charge upward among Frankfurt's blue chips, adding more than 2.8 percent. Airline Lufthansa (FLHA) jumped 3.5 percent.
Deutsche Telekom (FDTE) shares added 0.8 percent after unveiling the sale of a 65 percent stake in its Hesse region cable network to Klesch & Co. a British investment firm. Separately, a published report said Telekom executives have lowered their expectations for the share price in the initial public offering for the company's T-Online Internet unit, set for next month, because the recent slump in technology stocks threatened to hurt demand for the IPO.
Electronic components maker Epcos fell 4.1 percent, but technology and engineering company Siemens (FSIE), Epcos's largest shareholder, added 2.3 percent. Software maker SAP (FSAP) fell 3.9 percent.
And the German steel and engineering group ThyssenKrupp (FTKA) shed 2.7 percent after its board agreed to bid about 8.75 billion ($8.4 billion) for Atecs Mannesmann, the automotive technology and machinery unit of Mannesmann (FMMN).
Mannesmann, which is poised to be acquired by U.K. mobile-phone service provider Vodafone Airtouch, had planned to take the Atecs division public, a deal that analysts said would value the business at between 9 billion and 11 billion.
In the currency market, the Japanese yen rallied against the dollar and the euro after a government report in Japan indicated an increase in household spending in February despite record levels of joblessness. Market watchers are also expecting Japan's influential tankan survey on Monday will show an improvement in business confidence.
The euro fell to record lows against the yen Friday, trading at ¥97.81. The yen also rose to ¥102.06 against the dollar from ¥105.35 in late New York trade Thursday. The euro fetched $0.9557 
--from staff and wire reports
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