Telecoms stocks stayed out of favour, with marked weakness overnight on the Nasdaq and disappointing results from British Telecommunications acting as the signal for a further round of sniping in the sector.
Heavyweight casualties included Deutsche Telekom, down 2.7 per cent at €40.50, and Telefonica and KPN which slipped 5.1 per cent to €21.55 and 4.3 per cent to €20.20 respectively.
The sector was also hit by harsh news from two high-profile associates of France Telecom.
German mobile phone group Mobil Com and NTL, the UK cable TV leader, wheeled out dismal trading statements. Losses for the two groups are mounting and are likely to get worse before they get better. France Telecom has big minority stakes in both companies.
Mobil Com, which stood at €210 eight months ago, crashed 18 per cent to €57.70. France Telecom ended €2.10 lower at €113.3 for a two-day setback of 5.4 per cent.
The US Nasdaq's overnight tumble, and a number of broker downgrades, made for an uncomfortable day in the technology sector.
Among leading shares, Alcatel fell 3.1 per cent to €72.20, STMicroelectronics dropped 6.3 per cent to €52, Philips Electronics gave up 4.8 per cent to €43.11 and SAP lost 4 per cent to €226.50 .
Industrial and technology group Siemens dropped 2.5 per cent to €137.26, still bruised by concern about its growth prospects. On Wednesday the company said growth in fiscal 2001 was not likely to be as dramatic as in the previous 12 months.
Private bank Merck Finck, which cut its recommendation on the stock, cautioned that it expected Siemens' earnings growth to slow in the current year.
Dutch data communications network Versatel remained on the slide, still smarting after sharper third quarter losses, reported on Tuesday. The shares lost 6.1 per cent to €17.85, adding to the 18 per cent tumble of the previous two sessions.
