Frankfurt celebrates as E party get under way

A storming start to the first day of euro trading sent Frankfurt spiralling 5.7 per cent upwards, its steepest one-day gain since early October. The Xetra Dax finished 283.79 higher at 5,290.36.

Telecoms, a dull feature lately, made up for lost time, surging strongly on a media report that market leader Deutsche Telekom could be set to step up inter-connection fees.

Deutsche Telekom rose 4.37 cents, or 15.6 per cent, to 32.43 and Mannesmann pushed ahead 10.80 to 109.50. Mobilcom gained 32.02 to 303. In each case, however, trading volumes were on the thin side.

Volkswagen rose 7.20 to 75.20 after positive remarks on company profits at the Detroit motor show, although analysts pointed out that the forecast of 1998 figures being well ahead had been visible at the nine-month stage.

It helped keep motors upbeat, however. BMW jumped 46.70 to 690.50 and DaimlerChrysler added 3.90 at 87.50.

Paris ended at its high for the session, gaining 204.8 to 4,147.5, with nine individual components of the benchmark advancing more than 7 per cent, notably Paribas and Renault.

Banks in general were strong.

Paribas added 8.15 or 11 per cent to 82.20, while Banque Nationale de Paris rose 4.85 to 75. Societe Generale jumped 12 to 150.

In motors, Renault gained 3.63 to 41.89. France Telecom, up 5.60 to 73.30, kept in step with the broad European upswing for the telecoms sector.

Amsterdam ended 20.59, or 3.8 per cent, higher at 558.95 on the AEX index, with a strong run for financials and a chart-topping performance from telecoms leader KNP, up 5.59, or 13.1 per cent, at 48.25 supplying the main motive power.

Among the financial heavyweights, ABN Amro rose 73 cents to 18.65, while Fortis Amev jumped 3.84 to 74.45.

ING ended 3.69, or 7.1 per cent higher, at 55.65.

The party mood somehow evaded Akzo Nobel and Unilever, which dipped 90 cents to 37.90 and 1.03 to 71.80 respectively.

Zurich shot up 3.9 per cent on the view that there was room for Swiss shares to benefit from portfolio adjustments in the wake of the euro's launch.

The SMI index put on 281.1 to 7,441.8, although trading remained on the quiet side, in line with activity during the final sessions of 1998.

Pharmaceuticals and chemicals were in demand. Novartis rose SFr122 to an all-time high of SFr2,822, while Roche certificates were SFr350 higher at SFr17,110.