High-technology stocks came under close scrutiny across Europe in the wake of Friday's antitrust ruling against US software giant Microsoft. The IT hardware sector in the FTSE Eurotop 300, which includes ASM Lithography and STMicroelectronics, was the best performer, with a rise of 2.6 per cent.
The FTSE Eurobloc 100 index rose 3.80 to 1,147.36 while the FTSE Eurotop 100 gained 13.38 to 3,159.56. The FTSE Eurotop 300 index put on 3.93 to 1,369.16. A number of European high-tech companies opened lower but bounced back on the realisation that Microsoft might have to cut its prices or split its operations. German software giant SAP was a case in point. Its shares fell to €399 before rebounding to close €2.49 higher at €409.49. France's STMicroelectronics fell to €96.05 in early business. However, the share picked up to finish €4.50 higher at €101.50.
In Amsterdam, Baan fell 14 cents to €12. However, ASM International, the semiconductor equipment maker, soared €3.25 or €28.4 per cent to €14.70 on the back of a number of recent positive analysts' reports. The stock has more than doubled in value since mid-October.
Frankfurt closed off 10.16 at 5,647.94 on the Xetra Dax index after a low of 5,613.95. Weekend press stories linking Mannesmann with a variety of industry heavyweights kept the takeover pot simmering at the telecoms and engineering group's shares. The news that France Telecom would step in with a bid for Orange, the British mobiles group, should its deal with Mannesmann fall through, also boosted sentiment. Mannesmann gained €4.30 at €165.60 for a two-day rise of almost 11 per cent.
Dresdner Bank, boosted lately by merger speculation, ran into profit-taking, with disappointing third-quarter figures sparking a wave of selling. The shares ended 55 cents lower at €50.03. Upbeat nine-month sales sent chemicals group Henkel up €1.80 at €67.50.
Amsterdam ended little changed with the AEX index off 0.80 at 582.13. Unilever rallied, partly reversing last week's severe sell-off in the wake of disappointing third-quarter results from the foods to detergents giant. The stock added 25 cents at 56.30.
In financials, ABN-Amro and ING were mixed on persistent speculation that the two groups were in merger talks. ING, which denied the rumours, added €1.00 at €59.58. ABN came off 22 cents at €23.58.
Paris recouped initial losses after Wall Street's unexpectedly positive opening. The benchmark CAC-40 index gained 18.87 to 4,994.77, its seventh consecutive record close.
