Tech stocks send Paris tumbling to May levels

Shares in Paris fell back to levels last seen in May as the weakness on Nasdaq hit technology stocks, while some defensives also lost ground. The CAC-40 index closed 2.7 per cent lower at 6,354.93, with 34 decliners and just five risers.

Societe Generale was the biggest blue-chip loser, falling 9.58 per cent to €63.25 after its first-half results prompted profit-taking. Net profit was 28 per cent higher, a little above analysts' expectations, but the share price had already risen strongly in anticipation of the results.

The next biggest faller was defence electronics company Thom- son-CSF, 9.56 per cent to €42.96. There were plenty of other sizeable falls among technology stocks, including ST Microelectronics, down 6.9 per cent to €57.10, Equant, 7.1 per cent to €40.31, and Bouygues, 5.8 per cent to 61. Alcatel fell 6.6 per cent to 71.

Frankfurt fell as technology leaders tracked lower after early losses on Nasdaq. Epcos ran into heavy selling in spite of strong first-half results. Spun off by Siemens last year, the stock fell €16 or 15.5 per cent to €84. Siemens lost €9.70 at €156.20.

SAP came off €12.80 at €232.80 and Infineon €3.72 at €67.27. Deutsche Telekom shed 35 cents at €45.20. Financials had another poor session in spite of the "no change" signal on interest rates by the European Central Bank. Deutsche Bank lost €2.30 at €95.70. Among insurers, Allianz shed €2.20 at €388.50.

Amsterdam ended 9.21 lower at 666.75 on the AEX index after heavy tech falls. Philips fell back steeply, €3.61 or 7.4 per cent to €45.09. ASM lithography lost €4.40 at €36.75 and KPN 96 cents at €38.04.

Stockholm closed 3.2 per cent down at 5,493.31 on the general index, taking it back to its mid-January level. Turnover was high for a summer's day. The Nasdaq fall pulled Ericsson down SKr11.50 to SKr161.50 (€19.12).

Helsinki closed at a new low for the year as Nokia tumbled again amid weak tech sentiment. The general index fell 5.2 per cent to 12,650.51.