Alcatel results lead to modest tech bounce

There was a modest technology bounce yesterday, led by Alcatel which reported first quarter results. Nokia was up 2.4 per cent at €34, Ericsson rose 4.2 per cent to SKr62 and SAP rose 2.5 per cent to €172.

Alcatel, the French telecommunications equipment maker, rose 4.2 per cent to €33.63 after reporting a 4 per cent rise in first quarter operating profits. While it scaled back its sales forecasts for 2001 to 515 per cent growth compared with a previous estimate of 20 per cent, investors were relieved that the cut was not greater.

Electronics group Siemens lost 4.6 per cent to €121.65 after it reported a fall in second quarter profits which was in line with expectations. It announced 3,500 job losses and cut its forecast for global industry mobile handset sales this year.

Dutch data networks company Versatel leapt almost 17 per cent to €4.73 although there was no market-moving news from the company. Some traders reported speculation about a takeover bid although Johnathan Dann, telecoms analyst at HSBC, dismissed that possibility. Spain's Jazztel, which operates in similar businesses, reported first quarter results which left its shares 2 per cent higher at €9.70. E-commerce software maker Brokat Infosystems fell more than 20 per cent in early trade following Wednesday night's cut in its sales targets for the year. Brokat, a fallen star of the Neuer Markt, said it expected sales of €180 million-€190 million, down from a previous forecast of €240 million. The shares ended 11 per cent lower at €7.80.

Troubled household appliance maker Moulinex-Brandt fell 4.25 per cent to 4.28 after the group reported a net loss of 130 million for 2000, ballooning from a loss of €16 million in 1999. Moulinex has only made a profit twice in the past decade.

In the pharmaceuticals sector, Sanofi-Synthelabo continued to feel the benefit of Wednesday's strong first quarter sales and its bullish forecast. Lehman Brothers raised its price target on the stock to €70, while Deutsche Bank raised its recommendation, with a target price of €80. Sanofi's shares climbed 4.9 per cent to €65.05.