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London bucks bourse trend
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March 26, 1999: 1:24 p.m. ET
London pulled up by Dow as other markets close down on Kosovo worries
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LONDON (CNNfn) - London was the only major European market to stay out of the minus column Friday, helped by a sharp recovery of the Dow Jones industrial average before the U.K. exchange closed.
Europe's other main bourses all ended the session in the red as concern mounted about the wider effects of escalating NATO air strikes against Yugoslavia over the weekend.
Oil and defense stocks helped keep London in the black and limit losses in Paris, after a day of choppy trading across Europe.
The air and missile strikes against Kosovo and Serbia, now in their second day, had their first effect on the markets as investors exited positions ahead of the weekend. "There's a lot of news coming out about the war, and when you hear all that stuff, no one really wants to take positions before the weekend," one trader told Reuters.
Ironically, defense stocks were among the session's best performers, reacting to the prospect of future spares and ordnance sales. Oil stocks got a boost as the price of Brent crude moved comfortably above the $14 dollar level.
In London, the FTSE 100 was the most stable of the bourses throughout the session and ended up 0.89 percent at 6,139.2, a rise of 24 points on the week. The London market closes half an hour after its continental counterparts and so benefited from the Dow reversing most of its early losses.
In Paris, the CAC 40 ended down 0.51 percent at 4,115.71, having spent most of the morning in the black. French blue chips fell 2.5 percent on the week.
Frankfurt was by far the biggest loser over the past five session, ending down 1.32 percent at 4,799.59 Friday. The electronically-traded Xetra Dax dived over 6 percent on the week.
In Zurich, the SMI index closed just above the 7,000 mark, after falling 2.8 percent over the past five session. Swiss blue chips lost just over 1 percent Friday to end at 7,008.2.
Oil stocks were strong Friday after crude futures briefly touched $16 in Asian trading overnight. Brent crude futures stood at $14.11 in London late Friday, well up on Thursday's close.
Index heavyweight BPAmoco (BPA) ended up 2.47 percent at 1,037 pence in London, while Shell (SHEL) was 1.8 percent higher at 411 pence.
In France, both oil major were among the session's best performers. Total (PFP) rose just under 5 percent to 112.6 euros. Elf Aquitaine (PAQ) jumped just over 3 percent to 125 euros.
Weapons makers also made strong gains after NATO said the strikes on Yugoslavia would intensify. British Aerospace (BA.) rose 3.66 percent in London to 425 pence. In Paris, defense electronics maker Thomson-CSF (PHO) rose 1.82 percent to 28 euros.
London's biggest gainer was the banking group Woolwich (WWH), which added over 8 percent to end to 394 pence.
U.K. leisure group Ladbroke (LADB) rose 3.5 percent to 300 pence as investors applauded its refocusing on hotel operations.
Three U.K. blue-chip supermarket groups were among the losers in London, after Asda Group (ASSD) confirmed Britain's competition watchdog is set to refer the industry to the competition authorities over alleged price fixing.
Asda lost the least ground, down just over 1 percent at 152 pence. J Sainsbury (SBRY) lost 4.67 percent to 378 pence and Tesco (TSCO) gave up 2.31 percent to 169 pence.
Drug group Zeneca (ZEN) closed 3.74 percent higher at 2,762 pence after the Federal Trade Commission cleared its merger with Swiss drugs company Astra Thursday. Astra was up 4.5 crowns at 181 in Stockholm.
The $24 billion merger of Germany's Viag (FVIA) and Switzerland's Algroup could collapse over differences between the companies' chiefs over stock-swap ratios and questions about the firms' compatibility, German business magazine Wirtschaftswoche reported.
Viag shares fell 11 euros to 480. Algroup stock in Zurich shed 20 Swiss francs to 1,622 francs.
Swiss food and drinks giant Nestlé reported a 2.6 percent rise in 1998 net income to 4.29 billion francs ($3 billion), ahead of expectations, but warned of tough economic conditions ahead.
Despite the challenges, the company predicted it would be able to improve sales and profit this year. Nestlé stock closed up 35 francs at 2,705 francs.
Insurer Swiss Life said Friday a one-quarter stake in the company being divested by banking giant UBS has been sold to about a dozen Swiss and overseas investors. Swiss Life also said it would acquire 3 percent of its own shares. The stock fell over 3.5 percent to 949 francs. UBS lost 9.50 francs to 458.50.
In Paris, Renault (PRNO) closed only 0.11 euro up at 34 euros after jumping over 2 percent in early trading, after strong gains Thursday. The shares responded to reports that the French automaker is close to taking a 35 percent stake in Japanese rival Nissan on what is hoped are better-than-expected terms. 
-- from staff and wire reports
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