EUROPE REPORT: Deutsche Telekom shares gained from news that Ron Sommer, the chief executive, had resigned, although they soon shed their immediate surge. By late trading they were up 6.8 per cent at €11, outpacing most of the telecommunications sector.
Other telecoms stocks also rose on better sentiment following Monday's sharp falls. France Telecom closed 7.3 per cent higher at €13.68 and Telefónica was up 5.2 per cent at €8.88.
Dutch electronics group Philips posted a stronger-than-expected profit before exceptionals in the second quarter, but a huge charge related to its Vivendi Universal stake pushed it to a net loss. The shares rose 1.3 per cent to €23.50.
Other companies in the electrical and electronic sector were mixed. Siemens rose 1.9 per cent to €55.57 but Thomson Multimedia fell 1.2 per cent to €22.51. STMicroelectronics was up 2.9 per cent at €23.81 and Infineon was up 5.6 per cent at €16.95.
The pharmaceuticals sector recovered strongly, although UK-listed Glaxo-SmithKline fell after the introduction of a generic rival to one of its top-selling drugs. Swiss group Novartis said its Geneva Pharmaceuticals unit had started distributing a version of Glaxo's Augmentin antibiotic. A legal appeal by Glaxo is pending. Novartis shares fell 3.4 per cent to SFr56.
Aventis edged up 0.2 per cent to €61.70, Schering rose 0.8 per cent to €52.50 and Sanofi-Synthelabo inched 0.1 per cent higher to €54. But Bayer fell 1.2 per cent to €29.01 and Roche shed 3.3 per cent to SFr108.75.
Insurance stocks were mixed as analysts said worries about the sector's exposure to falling equity markets appeared to ease. Germany's Munich Re reversed an early fall to trade 3.4 per cent higher at €214, while Allianz firmed 1.9 per cent. French group AXA fell 2.1 per cent to €13.67 and ING of the Netherlands shed 0.5 per cent to €20.90.
- (Financial Times Service)
