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Europe rallies behind techs
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January 12, 2001: 12:49 p.m. ET
CAC leads way as France Telecom soars; techs spur London, Frankfurt
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LONDON (CNNfn) - Buying fever in the tech and telecom sectors powered Europe's markets higher Friday, led by a more than 2-percent gain for Paris's leading index.
In Paris, the blue-chip CAC 40 rose 131.56 points, or 2.3 percent, to close at 5,834.34. Heavyweight France Telecom (PFTE) blasted up 10.5 percent and network equipment maker Alcatel (PCGE) rose up 7.8 percent.
On the week the CAC jumped 1.3 percent. 
London's benchmark FTSE 100 index rose 50.6, or 0.8 percent, to close at 6,165.5. The nine percentage gainers were in the so-called "new economy" sectors of technology, media and telecommunications. The FTSE fell 0.5 percent on the week.
In Frankfurt the electronically traded Xetra Dax closed up 0.38 percent to 6,490.03, as electronic component maker Epcos (FEPC) roared up 9.4 percent and Dax index heavyweight Deutsche Telekom (FDTE) tacked on 7.4 percent.
Elsewhere in Europe, Amsterdam's AEX rose 0.4 percent, Milan's benchmark MIB30 rose 1.4 percent as online directory provider Seat Pagine Gialle rose 12.7 percent. But in Zurich, the SMI fell 0.4 percent.
The broader FTSE Eurotop 300 index, a basket of Europe's largest companies, gained 0.5 percent, with its technology hardware sector up 4.5 percent amid a 5.7 percent gain for Swedish network equipment and cell-phone maker Ericsson. Tobacco and retail stocks fell.
 click here for the biggest movers on the ftse 100 in London
 click here for the biggest movers on the dax 30 in Frankfurt
 click here for the biggest movers on the cac 40 in Paris
In the currency market, the euro was headed lower against the dollar, buying 94.88 U.S. cents, compared with 95.28 cents in late trading in New York a day earlier.
click here for the biggest movers on the techMARK 100 in London
click here for the biggest movers on the Neuer Market in Frankfurt
click here for the biggest movers on the Nouveau Marché in Paris
As Europe's top bourses closed, the Nasdaq composite continued its upward trek, up 2.1 percent, a day after rising 4.3 percent. The blue-chip Dow Jones industrial average trickled down 1.93 points to 10,607.62.
In London Friday, technology service providers were on the upswing.
Sage Group (SGE) rose 6.3 percent, CMG (CMG) rallied 10.9 percent, Logica (LOG) climbed 6.7 percent, while Misys (MSY) added 5.8 percent.
Europe's biggest software company SAP (FSAP3) fell 1.9 percent, ending a four-day run during which it soared more than 40 percent, after Monday's report of better-than-expected revenue growth numbers.
Jeremy Batstone, head of research at NatWest Stockbrokers, told CNN the increased volatility in share prices has created opportunities for good buys in technology stocks.
"Given the plethora of profit warnings we have had and will have, investors won't expect this to be a very smooth passage," he said.
Investors in European tech stocks shrugged off lowered earnings forecasts late Thursday from U.S. computer makers Hewlett-Packard (HWP-: Research, Estimates), the world's third-largest computer company, and Gateway (GWT: Research, Estimates).
Buoyant chip, telecom stocks
Elsewhere in the tech sector, Franco-Italian semiconductor maker STMicroelectronics (PSTM) jumped 8.1 percent, German rival Infineon Technologies (FIFX) rose 5.9 percent, and Netherlands-based chip equipment maker ASM Lithography jumped 7.7 percent.
The world's largest mobile-phone network company, Vodafone Group, (VOD) rose 4.1 percent in London.
Retailers again came under pressure. France's Carrefour (PCA) slipped 4.1 percent, Germany's Metro (FMEO) shed 2.8 percent and British drugs vendor Boots (BOOT) fell 5.8 percent.
U.K. bath and beauty products retailer Body Shop (BOS) plunged more than 19 percent after the company warned that pretax profit before exceptional items for 2000 will be 10 to 15 percent below the previous year's mark.
In the media sector, French entertainment and water conglomerate  Vivendi Universal (PEX) added 5.6 percent and British financial data and news provider Reuters Group (FRTR) rose 6.4 percent in London.
In Amsterdam, cable operator UPC gained 8.1 percent.
Automakers stalled across Europe. France's PSA Peugeot Citroen (PUG) shed 2.1 percent and domestic rival Renault (PRNO) fell 1.4 percent.
In Germany, DaimlerChrysler (FDCX) shed 1.8 percent and truck maker MAN (FMAN) fell 2.3 percent.
-- from staff and wire reports 
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