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Bourses make muted gains
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September 20, 1999: 1:05 p.m. ET
Subdued Dow takes wind out of telecom-buoyed European stocks
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LONDON (CNNfn) - European bourses all posted modest gains at the close Monday, with most well off their session highs thanks to a slow start on Wall Street. Telecom and tech stocks provided most of the lift.
London's FTSE 100 closed just 17 points higher, a rise of 0.3 percent, at 6,056.5 -- the second session of consecutive gains after recent weak performances. Weakness in the retail sector tempered gains in telecom issues.
The CAC 40 in Paris closed up 36 points, or 0.8 percent, at 4,680.49, buoyed by strong tech and telecom stocks.
In Frankfurt, German blue chips made the strongest gains as the Xetra Dax closed a little less than 1 percent higher at 5,351.98, a rise of 48 points.
Trading in Zurich came to an abrupt, early halt Monday in the early afternoon due to technical problems. The shortened session left the SMI in Zurich 46 points higher at 7,072.3, a rise of 0.65 percent.
The FTSE Eurotop 300, a broader measure of the largest European shares, reflected the modest gains across Europe, as it closed 0.5 percent higher at 1,312.83, led by the tech and leisure sectors.
Much of the day's positive sentiment dissipated after a subdued start on Wall Street. The Dow Jones industrial average stood just inside the minus column, shortly after most of Europe's main markets had shut.
Monday was the first day that Europe's largest three markets -- London, Frankfurt and Paris -- brought their opening and closing times into line with each other.
In London, trading stabilized after investors and computer systems struggled to come to terms to with the earlier start.
Newcomer Sema Group (SEM) closed just inside negative territory after it plummeted 12 percent at the open due to some erratic trades. Another new entrant, South African insurer Old Mutual (OML) slumped 4.3 percent.
The main boost in London came from two leaders in the telecom sector.
Vodafone AirTouch (VOD) was the biggest gainer as the FTSE's second-largest stock closed almost 4 percent higher. Rival British Telecommunications (BT.A) also enjoyed a strong session to end 2.9 percent higher.
Internet technology services group Misys (MSY) was not far behind Vodafone as it jumped 3.8 percent at the close.
The retail sector weighed on the index, however, as supermarket giant Tesco (TSCO) stepped up the price war with its rivals. Tesco's stock fell 2.7 percent, while Sainsbury (SBRY) slipped 2.4 percent.
Rival retailer Marks & Spencer (MKS) was the biggest loser among blue chips with a 4.3 percent dip, undermined by a report that its August sales slumped 18 percent.
Rolls-Royce (RR) plunged 4.4 percent after making a friendly 576 million pound ($933 million) bid for Vickers (VICK) to create the world's largest marine engine maker. Analysts worried that Rolls may have overpaid.
Vickers, a non-blue chip stock, saw its shares rocket almost 49 percent on the news.
In Frankfurt, Europe's largest software company SAP [FSE;FSAP3] led the way as it jumped 5.2 percent, following recent weakness.
The telecom and engineering company Mannesman (FMMN) was also strong, rising 3.4 percent after it negotiated lower charges from rival Deutsche Telekom (FDTE), which closed 1.5 percent higher.
Household products maker Henkel (FHEN) gained 2.3 percent. Utility provider Viag (FVIA) gained 2.2 percent amid reports it would seal a deal with rival Veba (FVEB) later this week. Veba stock rose just under 1 percent.
Newcomer Fresenius Medical Care (FFME) closed a little more than 1 percent lower.
In Paris, Dexia (PDEX) was the biggest gainer, closing 4.9 percent higher after announcing plans at the weekend to merge its French and Belgian arms to form Europe's largest municipal bank.
France Telecom (PFTE) also made strong gains supported by positive analysts' comments, rising 3.9 percent. Reports that it planned to sell its 20 percent stake in cellular operator Panafon also helped the stock.
Another telecom, Equant (PEQU), attracted a lot of buying interest to finish 3.5 percent higher.
Utilities provider Vivendi (PEX) closed 2 percent higher after it confirmed that it might dispose of its U.S. electricity arm.
Drug maker Sanofi-Synthelabo was the biggest decliner as it closed more than 4 percent lower.
-- from staff and wire reports
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