Frankfurt enjoys gains as Paris sees tech surge

Easing oil prices and a harder euro combined to lift Frankfurt which gained steadily in spite of a mixed showing by leading stocks. Technology stocks supplied most of the day's supports, notably Deutsche Telekom which surged 4.8 per cent in 11 million shares traded as the bargain hunters swung into action.

A rally for Telekom's mobile offshoot T-Online amid rumours of the imminent appointment of the new chief executive plus a steady start to the Nasdaq also helped sentiment. Telekom rose #1.85 to #40.50. Among other techs, Siemens put on #5.05 at #157.55 and SAP #17.40 or 6.7 per cent at #278. Utilities leader Ion added #1.31 at #57.50 following positive comment from Lehman Brothers which lifted its weighting in the sector.

RWE, on the other hand, fell 87 cents to #38.96 after confirming a #6.8 billion takeover bid for Thames Water of the UK. Rumours of a disposal by RWE did not entirely dispel concern about possible earnings dilution. Other weak features included DaimlerChrysler which shed #1.93 at #51.03 and Karstadt Quelle where shares in the retailer tumbled #1.95 or 5.5 per cent to #33.55. The Xetra DAX index was up 69.29 at 6,809.54 at 5.30 p.m. German time.

Paris rose 77.70 to 6,336.28 on the CAC-40 index amid a rush by investors to climb back into technology leaders. France Telecom surged #7.50 or 6.5 per cent to #122.50 and Bouygues gained #2.65 at #59.75. Alcatel rose #3.70 to #83 and Cap Gemini gained #13.80 or 6.9 per cent at #214.30. Media stocks pushed ahead. Havas jumped #1.75 or 8.9 per cent to #21.45 before requesting a suspension of trading ahead of the publication of its half-year results. TF1 added #1.95 at #74.70.

An easing of international oil prices led to profit-taking at Total Fina Elf which ended #5.20 lower at #163.90. Amsterdam added 5.60 at 658.56 on the AEX index after strong gains for technology and media sectors offset a shakeout at Royal Dutch.

Helsinki jumped 3.5 per cent with rebounding telecoms Nokia and Sonera providing impetus for the broad market after last week's sharp losses. The Hex general index jumped 460.08 to 13,777.39, recouping some of last week's losses of 8 per cent.