Technology stocks climbed yesterday in only the second up day of the new year as investors picked up bargains in the battered sector while blue-chip shares in the old economy fell. Damage from Nokia'a announcement of weaker-than-expected mobile phone sales in 2000 was mostly limited to the world largest cellular-handset maker, its competitors and suppliers.

Among the most active Nasdaq names, WorldCom gained $1.63, or 8.9 per cent to 19.81; Microsoft rose $2.88, or 5.9 per cent, to $51.81; and Intel edged up 31 cents, or 1 per cent, to $32.25.

But investors retreated from Nokia and similar stocks. Nokia fell $3.94, or more than 9 per cent, to $39.19 following the company's weaker-than-expected mobile phone sales for 2000.

The US-traded equity of Ericsson, Nokia's arch rival, fell 6 per cent and Motorola gave up $1.06, or nearly 5 per cent, to finish at $20.69.