|
Europe sinks on telecoms
|
 |
July 21, 2000: 12:18 p.m. ET
Ericsson's disappointing results hit tech stocks; carmakers add to gloom
|
LONDON (CNNfn) - Europe's major stock markets slumped to a close Friday as U.S. markets headed down on a fresh batch of earnings warnings. Phone equipment companies already were declining after an unexpectedly weak second-quarter report from Sweden's Ericsson. Automakers added to the gloom.
London's benchmark FTSE 100 index fell 90.6 points, or 1.4 percent, to 6,378.4, with cable company Telewest Communications (TWT) the leading loser, down 9.1 percent after analysts at HSBC Securities cut their rating on the stock to "sell" from "hold".
The CAC 40 index in Paris fell 99.65 points, or 1.5 percent, to 6,464.12, with automaker Renault (PRNO) off 3.5 percent, and construction and mobile phone company Bouygues (PEN) off almost 2.4 percent.
Frankfurt's Xetra Dax index fell 1.43 percent, or 106.88 points, to 7,373.26, with automaker BMW (FBMW) down 2.5 percent and Deutsche Telekom (FDTE) off 3.6 percent.
The FTSE Eurotop 300 index, a basket of Europe's biggest companies, shed 1.4 percent, with its information technology hardware sub-index down 4 percent after Ericsson reported strong earnings, but shocked investors by saying its mobile-phone handset unit plunged to a second-quarter loss. Ericsson shares fell 10.9 percent in Stockholm.
Among the Swedish company's rivals, France's Alcatel (PCGE) fell 2 percent in Paris even after it announced plans to raise its stake in British contractor CTC to 74 percent. Finland's Nokia fell 0.8 percent, paring earlier losses.
In the U.S. Friday, the Nasdaq composite fell 0.7 percent while the Dow Jones industrial average slipped 0.2 percent.
In the currency market, the euro edged up to 93.41 U.S. cents from 93.24 cents in late New York trading Thursday.
 On London's FTSE 100, United News & Media (UNWS) rose 1.5 percent and Carlton Communications (CCM) fell 2.2 percent after the companies called off their planned merger because the U.K.'s antitrust watchdog said they could go ahead only if they divested one of their regional TV franchises. The merger originally was valued at about $12.6 billion. Granada Media (GME), which is keen on acquiring either company, fell 4.8 percent.
Business telecom network operator Energis (ENE) jumped 2.7 percent and optical components maker Bookham Technology (BHM) rose 3.2 percent.
Index heavyweight Vodafone AirTouch (VOD) shed 3.3 percent. Luxury goods firm Richemont agreed Friday to buy watchmaker Les Manufactures Horlogeres from Vodafone's recent German acquisition Mannesmann for 3.1 billion Swiss francs ($1.8 billion).
Alstom sales climb
In Paris, CAC 40 heavyweight France Telecom (PFTE) fell 3 percent and chip maker STMicroelectronics (PSTM) fell 2.2 percent. Computer consultant Cap Gemini (PCAP) was the index's leading gainer, up 6.7 percent.
Oil stocks across the continent were weaker. Total Fina Elf (PFP) was down 3.7 percent, and Britain's BP Amoco (BPA) lost almost 3 percent.
Insurers were depressed. Axa (PCS), the world's biggest, fell 1.8 percent and rival Assurances Générales de France (PAGF) slipped 1.7 percent. Britain's Legal & General (LGEN) lost 4 percent, and Munich Re [FSE: ] fell 3 percent.
Software maker SAP (FSAP) fell 1.9 percent, electronic components maker Epcos (FEPC) dropped 2.4 percent, and chipmaker Infineon (FIFX) lost almost 2 percent. Engineering powerhouse Siemens (FSIE), parent of Epcos and Infineon, fell 1.7 percent.
On the upside, healthcare company Fresenius Medical Care (FFMC) added 2 percent and drug maker Schering (FSCH) rose 1 percent.
HypoVereinsbank (FHVM) rose almost 1.9 percent following a report in the Wall Street Journal that the No. 2 German bank is poised to buy Bank Austria, that country's top bank. Other banking stocks also firmed. Dresdner Bank (FDRB) rose 1.7 percent, Deutsche Bank (FDBK) gained 0.9 percent, and Commerzbank (FCBK) added 0.4 percent.
Shares of retailer Karstadt Quelle (FKAR) fell 4.6 percent in Frankfurt. 
-- from staff and wire reports
|
|
|
|
|
 |
|
