Germans stay on top as techs batter bourses

German equities managed to push to a record high, but the broad run of European markets lost ground as some of the recent high-powered tech gains were unwound.

The FTSE Eurobloc 100 index shed 0.6 per cent at 1,271.76 and the FTSE Eurotop 100 index came off 0.9 per cent at 3,433.42. The FTSE Eurotop 300 index ended 0.9 per cent lower at 1,480.61.

Frankfurt rode up on a late morning rally on Wall Street to close with the Xetra DAX index 44.76 higher at a record 6,232.75. There was a clear shift by investors back to basic industry stocks. Thyssen Krupp, the steel leader, added €1.88 or 6.5 per cent at €30.88 which was well into new territory for the year.

Motors too were strong. DaimlerChrysler added €2.95 at €70.95 and Volkswagen gained €2.56 at €50.66. Man rose €3.00 to €35.30.

The record-breaking run at software leader SAP continued. The shares advanced a further 21.00 at €586 for a three-day gain of almost 26 per cent.

Paris ended in the red, dragged down by falls in high-tech stocks after an overnight fall in Nasdaq. The benchmark CAC-40 index ended 34.34 lower at 5,530, a fall of just 0.62 per cent. The technology-laden Nouveau marche index was harder hit, declining almost 7 per cent from Tuesday's record high.

A warning by Cisco Systems, which said that net sales growth could be significantly lower in future, was largely to blame. Alcatel was one of the worst affected, falling more than 8 per cent or €18 to €199.

Cap Gemini tumbled still further. At the end of the session it settled €21 below Tuesday's close at €210, a fall of more than 9 per cent.

This was partly offset by rises in cyclical stocks. Saint-Gobain, the building materials supplier, headed the winner's list. The shares rose €11.40 to €181.30 for a rise of almost 7 per cent. Fellow building materials suppliers Lafarge advanced €7.10 to €104.

Milan pulled back from Tuesday's record high, hit by profit-taking in technology and telecoms-related stocks. The Mibtel index finished 370 lower at 26,419.