|
Europe closes lower
|
 |
May 29, 2001: 12:01 p.m. ET
Telecom companies' shares in trouble; Nasdaq's fall hits tech stocks
|
LONDON (CNN) - Europe's major bourses ended lower on Tuesday, as telecom shares took early losses, and were then followed by a falling Nasdaq market which affected tech stocks.
London's FTSE 100 was down 0.5 percent at 5,861.1 at the close, as the index's second-biggest stock, wireless operator Vodafone (VOD), fell 3.8 percent despite posting a £9.8 billion full-year loss, at the top end of expectations.
Telecom testing equipment maker Spirent (SPT) was the hardest-hit share, falling 7.4 percent to 289 pence, after Goldman Sachs dropped its price target from 539 pence to 324 pence.
In Paris, the CAC 40 blue chip index was down 1.1 percent at 5,542.27. Chipmaker STMicroelectronics (PSTM) fell 4.9 percent after Deutsche Bank dropped its earnings-per-share estimates by around 10 percent. Mobile operator Orange (PORA) was down 3.2 percent despite having denied reports that it was in discussions to buy German operator E-Plus.
Frankfurt's electronically traded Xetra Dax was trading 1.4 percent lower at 6,130.09 late in the day. Another chipmaker, Infineon (FIFX), was the worst performer, down 5.2 per cent, hit by news from the United States that earnings estimates for two major technology firms had been cut by Goldman Sachs.
Deutsche Telekom (FDTE), Europe's biggest phone company as measured by sales, fell 3.4 percent as Chairman Ron Sommer faced angry shareholders at the company's annual general meeting. The company's share price has fallen 58 percent in the last year alone and 75 percent from its March 2000 peak.
Other telecom stocks headed lower. British Telecom (BT-A) fell 1.7 percent and France Telecom (PFTE) was down 3 percent. Alternative carriers Colt Telecom (CTM) and Energis PLC (EGS) both fell more than 3 percent.
In Amsterdam, the AEX index was off 0.6 percent and the MIB30 in Milan lost nearly 1 per cent of its value, while the SMI in Zurich was 0.6 percent lower.
The pan-European FTSE Eurotop 300, a broader index of the region's largest stocks, was down 0.5 percent, with the telecom and computer sub-indices falling more than 2.5 percent.
In the U.S. the Nasdaq composite index lost 2.2 percent of its value, falling to 2,201.36 in mid-morning trading in New York, while the Dow Jones industrial average was up 25.7 points, or 0.2 percent, to 11,031.07.
Goldman Sachs had lowered its estimates on the data storage company EMC Corp and equipment maker Sun Microsystems, prompting the Nasdaq fall.
In the currency market, the euro weakened against the U.S. dollar, fetching 85.47 U.S. cents from 86.12 cents in late European trading on Monday.
French hotel giant Accor () said its U.S. business – including its Motel 6 and Red Roof chains - had seen a marked slowdown since the start of April. Its shares fell 2.4 percent in Paris.
Germany's second-largest power company RWE (RWE) was the best-forming share on the DAX, up 3.5 percent, after reporting a solid nine-month operating profit and raising its full-year targets.
The world's largest reinsurer, Munich Re (FMUV2), rose 2.2 percent after saying it expected double-digit growth in 2001 net profit.
The world's third-biggest papermaker, UPM-Kymmene, rose 0.1 percent on the Helsinki exchange after announcing the acquisition of privately-held German magazine papermaker Haindl'sche Papierfabriken KgaA for cash and stock worth  3.64 billion.
Energy giant TotalFinaElf (PFP) gained 2.2 percent in Paris after news that it was teaming up with Britain's Centrica (CNA) to buy out the British unlisted generator Humber Power.
Pan-European cable operator UPC fell 0.8 percent in Amsterdam after announcing it had secured crucial financing from Liberty Media.
Europe's No. 4 phone equipment maker Alcatel (PCGE) lost 3 percent as the expected announcement of its acquisition of Lucent Technologies loomed closer.
In London, media group Emap (EMA) was up 3 percent after announcing its chief executive had been replaced and it would have news soon on the sale of its unprofitable U.S. unit.
Shares in computer games maker Eidos (EID) fell 6.6 percent after it said it would raise cash through a cut-price share issue.
Carphone Warehouse (CPW) lost 2.5 percent despite posting a 62 percent rise in annual profit. 
|
|
|
|
|
 |
|
