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Europe ends session mixed
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June 13, 2000: 12:25 p.m. ET
Oil and drug stocks buoy FTSE, banks and financials top Dax; techs take a hit
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LONDON (CNNfn) - Europe's major markets were mixed at the close of trading Tuesday, with many "old-economy" stocks rolling back into fashion as tech stocks took another pummeling amid concerns about share valuations.
In London, the benchmark FTSE 100 rose 0.3 percent to 6,448, led by oil and drug stocks. Financial stocks dominated the gainers in Frankfurt, pulling the Xetra Dax up 33.27 points, or 0.46 percent, to 7,268.91.
The blue-chip CAC 40 in Paris, reopening after Monday's holiday, headed down, slipping 9.46 points, or 0.1 percent, to 6,539.59, while the SMI in Zurich, also closed Monday, was up 0.26 percent.
The FTSE Eurotop 300 index, a basket of the region's biggest companies, slipped 0.1 percent to 1,617.22.
In the U.S., the tech-heavy Nasdaq composite index fell 0.7 percent and the Dow Jones industrial average was little changed at 10,562.44 in midday trading.
"The [European] market is taking its lead from Wall Street, and there's increasing concern we will see the impact of slowing corporate profits turn up on stock prices," Gary Dugan, European equity market strategist at J.P. Morgan, told CNNfn.com.
But there were some positive signs for "new-economy" stocks, Dugan said. "We're still getting some good news flow, deals and the like, so I think [the technology, media and telecommunications sector] will hold up well... I think most of the selling we will get is going to be in financials."
Dollar weaker
In the currency market, the dollar traded at ¥106.74, down slightly from ¥106.74 in late New York trade Monday. The dollar also weakened against Europe's common currency to 96.04 U.S. cents per euro from 95.34 cents in New York late Monday.
In London, oil stocks rose as crude prices continued to climb, with BP Amoco (BPA) advancing 1.7 percent and rival Shell Transport and Trading (SHEL) up 0.6 percent. Drug stocks also were in demand as Glaxo Wellcome (GLXO) added 1.7 percent and merger partner SmithKline Beecham (SB-) climbed 1.75 percent.
Celltech (CLT), Britain's biggest biotechnology company, rose 4 percent to 1,180 pence.
Hilton Group (HG-) rose more than 5.6 percent as "old-economy" issues made a comeback. Europe's third-largest steel maker, Corus Group (CS-), gained 3.3 percent, life insurance and pensions provider Allied Zurich (ADZ) added 4.1 percent and beverages maker Allied Domecq (ALLD) leapt 1.3 percent.
Electricity generator National Power (NPR) added 5.4 percent and United Utilities (UU-) rose 6.3 percent.
Reed International (REED), the London-quoted co-owner of Anglo-Dutch publisher Reed Elsevier, rose 9.1 percent to 562 pence, to register as the FTSE's biggest gainer.
 Technology stocks came under pressure. Software firm Misys (MSY) shed 6.9 percent, while Internet service provider Freeserve (FRE) fell 3.7 percent. Technology consultant Logica (LOG) slipped 5.4 percent and Irish Internet security firm Baltimore Technologies (BLM) lost 6.4 percent.
Outside London's benchmark index, computer distributor Computacenter (CCC) sank 26.6 percent after warning earnings for the year probably will fall short of expectations, though first-quarter profit will meet forecasts.
Computer games publisher Eidos (EID), best known for Tomb Raider heroine Lara Croft, dropped 4.6 percent, rebounding from a 14 percent loss in early trading, after saying poor sales are continuing and it had an operating loss in the year ended March 31.
WF Electrical (WFE) rocketed 62.9 percent to 550 pence after the British electrical goods distributor agreed to an £85.5 million ($129.3 million) cash takeover offer from the Dutch trading firm Hagemeyer. The deal values WF at 565 pence a share.
Buyers target Equant?
On the Paris bourse, shares of Equant (PEQU) rose 9.8 percent after the Wall Street Journal reported the Dutch-based network operator is in talks to be acquired by France Telecom (PFTE) or Global Crossing (GBLX: Research, Estimates), the Bermuda-based operator of undersea cable networks, in a deal worth about $10 billion. France Telecom declined to comment, as its shares fell 1.8 percent. Separately, Reuters cited an industry source as saying that Deutsche Telekom (FDTE) also is interested in acquiring Equant.
Computer services firms also were lower in Paris. IT consulting firm Cap Gemini (PCAP) tumbled 2.8 percent and chipmaker ST Microelectronics (PSTM) fell more than 6.7 percent.
In Frankfurt, financial stocks were on the rise for a second session, led by reinsurer Munich Re [FSE:FMUV4], which rose 3.4 percent, while insurer Allianz (FALV) climbed 2 percent, Commerzbank (FCBK) added 1.8 percent and Deutsche Bank (FDBK) gained 1.9 percent.
Automaker BMW (FBMW) rose 2.9 percent, rival Volkswagen (FVOW) gained 1 percent, and engineering company Thyssen Krupp (FTKA) rose 1.3 percent.
Among high-tech stocks, software maker SAP (FSAP) dropped 2.6 percent. 
-- from staff and wire reports
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