Europe's techs and telecommunications fell back yesterday, shedding some of Monday's gains as Wall Street opened lower and bad corporate news continued to emerge.
Some two dozen US companies, including Broad-vision and i2 Technologies, issued profit-warnings late on Monday. SAP, Europe's leading software maker, fell 5.1 per cent to #156.80 and Cap Gemini fell 1.9 per cent to #85.
However, SAP said it was sticking to its forecasts and expected sales growth to exceed 23 per cent in the nine months to September.
Chipmakers came under pressure, with the US-based Semiconductor Industry Association reporting the sharpest monthly drop in sales of chips worldwide in 15 years.
Shares in STMicroelectronics fell 4.4 per cent to #38.93 and ASM Lithography fell 2.8 per cent to #26.05. But Infineon ended almost unchanged at #28.51 as banks issuing its new stock next week stepped in to support the shares.
In telecoms, France Telecom fell 4.8 per cent to #56.15 after France's SITA foundation, a pool of 450 air transport organisations, sold 13 million of its 31 million shares to institutional investors at #57 each, equivalent to 1.12 per cent of France Telecom's capital. But KPN Telecom jumped as much as 7 per cent following the Financial Times' report that talks over a merger with Belgacom were reaching their final stages. The shares pared their gains to end 3 per cent higher at #6.90.
Fiat stayed in the fast lane. Up 5.2 per cent on Monday, the shares added a further 2.7 per cent at #25.91 as investors warmed to the motor company's role in the #5 billion take-over bid for energy and chemicals conglomerate Montedison.
