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Europe mostly firm at close
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March 17, 2000: 12:56 p.m. ET
London flat, Paris buoyed by France Telecom rally, Frankfurt robust
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LONDON (CNNfn) - London's leading gauge emerged from a see-saw session almost exactly where it started Friday as weakness in drug, oil and bank stocks muted the upward momentum provided by heavyweight telecom Vodafone AirTouch and sector peer Telewest. Other bourses closed firmer, save for Zurich, which ended nearly half a percent lower.
Frankfurt finished up nearly 2 percent as weakness in auto stocks prompted by BMW's plans to pull out of its money-losing U.K. Rover subsidiary was offset by strong advances in leading technology issues.
The mixed finish capped a week that initially saw investors rotating cash out of fashionable companies in the telecom, media and technology sectors and into beaten-down "old economy" stocks in steel, mining and food. By Friday, however, techs had returned to favor, with traditional stocks once again suffering declines.
The benchmark FTSE 100 index in London closed up 0.8 point at 6,558.0, just poking into the black, as investors breathed a sigh of relief at U.S. consumer price data indicating inflation had remained under control in February. The numbers, though stronger than expected, boosted hopes that the Federal Reserve will raise interest rates only moderately next Tuesday. The blue chip index had soared 150 points earlier in the session on the back of Wall Street's record-breaking 499-point advance.
The FTSE 100 was up about 10 points, or 0.1 percent, for the week.
In Paris, the CAC 40 ended three-quarters of a percent higher at 6,304.28, buoyed by a strong advance in heavyweight France Telecom (PFTE) as French Prime Minister Lionel Jospin suggested the French government soon may issue new shares in the carrier, in which it holds a 62 percent stake. The CAC 40 lost 3.1 percent for the week. The electronically traded Xetra Dax finished up 1.5 percent at 7,694.52, but down 3.3 percent from last Friday's close. The SMI in Zurich slipped 0.4 percent to 7,100.6, though it posted a 2.7-percent advance for the week.
The pan-European FTSE Eurotop 300 closed up half a percentage point at 1,698.66, led by gains of 3 percent each in its computer and information technology sectors and a 2.57 percent jump in the telecom segment. Old economy stocks that had performed so well earlier in the week succumbed to profit taking: Steel shares slid 4.9 percent while mining components gave up 3.3 percent.
In currency markets, the euro was quoted at $0.9707 in late trade Friday. Gold, meanwhile, slid to a seven-week low of $283.90 ahead of next week's sale of gold reserves by the Bank of England.
In London, drug, banking and oil stocks all exerted downward pressure on the index, which started with a string rally, slipped into the red as U.S. stocks opened weaker, but later edged back to end at break-even levels as Wall Street regained some of its footing a day after posting the largest single-session point advance in its history. Pharmaceutical firm Glaxo Wellcome (GLXO) lost 0.8 percent while AstraZeneca (AZN) shed 5.2 percent.
Oil producer BP Amoco (BP-A) gave up 2.3 percent while among banks Barclays (BARC) slid 7.6 percent, Lloyds TSB (LLOY) backtracked 3.1 percent and mortgage lender Halifax (HFX) lost 5.1 percent. High-profile retailers also got broadsided, with supermarket J. Sainsbury (SBRY) tumbling 10.2 percent and rival Tesco (TSCO) giving up 1.8 percent.
On the upside, telecom stocks performed well, with Vodafone AirTouch (VOD), the most heavily weighted component on the FTSE 100, advancing 4.6 percent and Telewest (TWT) racing up 10.3 percent.
In Paris, Internet access provider Liberty Surf rocketed 15 percent to 61.10 euros, surging for a second day after an initial public offering that valued the company at 3.5 billion euros. Chipmaker STMicroelectronics (PSTM) advanced 2.6 percent, while pay-TV broadcaster Canal Plus (PAN) fell 1.5 percent and computer services consultant Cap Gemini (PCAP) gave up 3.2 percent.
Hotel company Accor (PAC) slid 6.1 percent, trailed in the minus column by glassmaker Saint-Gobain (PSGO), down 5.6 percent.
Auto stocks weighed on sentiment in Frankfurt, which was kept aloft by strong gains in Deutsche Telekom (FDTE), up 2.7 percent, tech leader Siemens (FSIE), up 4.9 percent, and business software maker SAP [FSE:FSAP3], ahead 4.3 percent. BMW (FBMW) shares fell 5.5 percent to 29.99 euros in Frankfurt. Ford Motor Co. (F: Research, Estimates) Friday agreed to buy the German automaker's U.K.-based Land Rover sport/utility division for 3 billion euros ($2.9 billion), following BMW's divestment of most of its Rover car unit Thursday to British venture capital firm Alchemy Partners. Shares of DaimlerChrysler (FDCX) slumped 1.2 percent and Volkswagen (FVOW) stock slid 1.3 percent. 
-- from staff and wire reports
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