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Europe ends lower
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November 9, 2000: 12:37 p.m. ET
Technology, telecom shares languish as Nasdaq stays in negative territory
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LONDON (CNNfn) - Europe's major bourses ended lower Thursday as technology and telecom stocks lagged in step with losses in their U.S. counterparts on the Nasdaq composite index.
London's FTSE 100 failed to hold on to its modest earlier gain, dropping 0.5 percent to 6,442.2, with fiber-optic component firm Bookham Technology (BHM) plunging and COLT Telecom (CTM) falling sharply.
British Telecom's [LSE:BT-A] widely-predicted plans to restructure itself and list several units were greeted coldly by investors.
 In Paris, the blue-chip CAC 40 index fell 1 percent to 6,271.15, led by chipmaker STMicroelectronics' (PSTM) and consumer electronics firm Thomson Multimedia (PTMM).
Frankfurt's electronically traded Xetra Dax dipped 49.14 points, or 0.7 percent to 6,959.50 as losses in tech and telecom outweighed gains in the financial industry.
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Amsterdam's AEX index and the SMI in Zurich each fell 0.9 percent, while the MIB 30 in Milan inched up 0.1 percent.
The pan-European FTSE Eurotop 300, a broader index of the region's largest stocks, declined 0.8 percent, with its information technology sub-index and its computer segment each down 3 percent.
In the currency market, the euro was little changed against the dollar after the European Central Bank intervened for the fourth time in a week to prop up the battered currency. The euro bought 85.81 U.S. cents, up from 85.52 cents in late New York trading Wednesday.
In the U.S., the Nasdaq composite was down 1.3 percent in midday trade, extending Wednesday's 5.4 percent loss, and the Dow Jones industrial average slipped 0.5 percent.
Among technology stocks on the decline in Europe, Bookham Technology registered as the biggest faller on the FTSE 100, sliding 14.6 percent as investors digested third-quarter figures posted Wednesday. Nokia, the world's biggest maker of mobile-phone handsets, slipped 1.3 percent in Helsinki while Swedish rival Ericsson shed 4.2 percent.
British phone equipment maker Marconi (MNI) fell 3.9 percent and French counterpart Alcatel (PCGE) lost 3.1 percent.
Information technology consultant Logica (LOG) fell 2.4 percent in London, and counterpart Cap Gemini (PCAP) of France lost 2.6 percent.
Belgian speech technology firm Lernout & Hauspie dived 34 percent after the company said it will restate past financial results after auditors found errors and irregularities in a review of the company's books following allegations of accounting discrepancies. Trading in Lernout shares was suspended on the pan-European Easdaq market in Brussels pending further clarification of its financial statements. The Nasdaq market also suspended trading in its New York-listed shares.
Growth warning on chip profits
 Chipmakers came under further pressure after Infineon Technologies (FIFX) predicted earlier this week that growth will slow in the three months of the year. Infineon lost 0.5 percent in Frankfurt and France's STMicroelectronics fell 6.3 percent, the biggest decliner on the CAC 40. Chip designer ARM Holdings (ARM) dropped 5.2 percent in London.
German industrial and technology company Siemens (FSIE), parent of Infineon, fell 2.9 percent and its separately traded unit Epcos (FEPC), a maker of electronic components, slipped 2 percent. France's Thomson Multimedia (PTMM) shed 5.5 percent.
Software companies also came under pressure. Europe's biggest software house, SAP (FSAP), fell 3.9 percent in Frankfurt and Britain's Misys Group (MSY) dropped 6.3 percent. Internet security provider Baltimore Technologies fell 7.4 percent.
Telecom shares slide
British Telecommunications (BT-A) lost 5 percent. The company, which has been criticized for allowing its debt to balloon, unveiled plans to list shares in its wireless and network divisions to help cut its borrowings by £10 billion ($14.1 billion) by the end of 2001. BT also reported a slump in second-quarter profit, but beat analysts' forecasts. COLT Telecom Group tumbled 8 percent. Energis (EGS) lost 7.9 percent.
French construction and telecom company Bouygues (PEN) dropped 2.8 percent, continuing Wednesday's descent. Investment bank ABN Amro lowered its recommendation on the stock to "hold" from "add".
Shares in German mobile phone operator MobilCom (AMOB) fell more than 18 percent. The company reported a nine-month loss of 265.4 million marks ($116 million) as it incurred heavy expenses buying a German permit to operate third-generation mobile-phone services. France Telecom, which owns 28.5 percent of MobilCom, fell 3.4 percent. Deutsche Telekom (FDTE) fell 2.7 percent.
Dutch network service provider Equant (PEQU) ended down 3.4 percent.
French broadcaster TF1 [PAR:PTFl] dropped 3.4 percent while British Sky Broadcasting (BSY) lost 1.4 percent.
 Europe's biggest chemical company, BASF (FBAS), fell 2 percent after saying third-quarter operating profit before one-time items rose more than 10 percent to  765 million ($654 million), below market expectations.
German steel maker Thyssen Krupp (FTKA) slipped 3.2 percent after Deutsche Bank the previous day cut its forecasts for base metal prices in 2001.
Volkswagen (FVOW), Europe's largest automaker, fell 1.3 percent. The Financial Times said the company is finalizing a deal to buy 50 percent of British van manufacturer LDV from South Korea's bankrupt Daewoo Motors. The stake is worth $36 million. Rival DaimlerChrysler (FDCX) rose 2.1 percent.
 In London, music firm EMI (EMI) surged 6.3 percent after a brokerage's sale of 8.5 million shares fueled bid speculation.
Oil shares bucked the trend. Britain's BP Amoco (BP-) rose 2.5 percent, and local rival Shell Trading & Transport (SHEL) added 1.2 percent. Gas pipeline and telecom operator Lattice Group (LAT) rose 3.2 percent.
German financial shares were higher, with reinsurer Munich Re (FMUV) up 4.7 percent and insurer Allianz (FALV) climbing 2.4 percent. 
-- from staff and wire reports
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