The continuing global rout of technology and telecoms stocks left Helsinki nursing its largest one-day fall since October 1987 as Nokia and Sonera took another beating.

The Hex general index tumbled 1,424.46 or 9 per cent to 14,441.89, extending its decline in May to more than 21 per cent.

Telecoms equipment maker Nokia slumped €6.20 or 11 per cent to €50.30, 22.5 per cent below its high for the year on May 2nd. The share has shed almost €40 billion in market capitalisation over the last two sessions. Telecoms operator Sonera was €3.91 or 8.8 per cent lower at €40.60.

Stockholm was hit by a 6.8 per cent fall in heavyweight Ericsson and the general index closed with a loss of 244.37 or 3.8 per cent at 5,743.91.

The forthcoming sell-off of state telecoms operator Telia was another drain on the market with investors said to be selling off blue chips to raise cash for the new issue.

Frankfurt lost ground for the third day running and at the close the Xetra DAX index was off 76.07 at 6,912.96.

Most technology stocks tracked the Nasdaq's renewed weakness. Epcos shed €10.2 at €126.75 and Siemens €5.40 at €142.10. Deut- sche Telekom, down almost 15 per cent last week, rallied, adding 35 cents at €56.15.

In the tech-dominated Neuer Markt, the Newmax 50 index tumbled 7.4 per cent.

Paris ended lower as investors continued to flee from technology stocks. The CAC-40 index fell 1.6 per cent to 6,094.17.

At one point in the afternoon, with the Nasdaq falling rapidly, it looked as though the 6,000 mark was going to be breached, but the CAC bottomed out at 6,029.81. There was clear rotation from new to old economy shares.

Madrid fell as technology and telecoms stocks, including Telefonica, were undermined by another heavy slide on the Nasdaq and concern about rising interest rates. The Ibex 35 index lost 2.1 per cent to 10,326.3.

Amsterdam ended 10.65 lower at 641.80 on the AEX index following further steep falls for Philips and KPN.