The decline in technology stocks turned nastier yesterday as US economic data rattled the market and European companies put out fresh news on the downturn. The IT sector fell sharply and telecommunications and media stocks were also markedly lower.
Shares in Alcatel, the French maker of telecoms equipment, fell 7.4 per cent to €19.55, while Sweden's Ericsson fell 6.5 per cent to SKr58 and Nokia was off 4.8 per cent to €27.04. Cap Gemini shares fell 4.2 per cent to €77.10.
Infineon initially rallied 7 per cent as fears receded about a possible issue of shares and bonds. In late trade it was 1.5 per cent higher at €22.99, while fellow chip-maker STMicroelectronics fell 3.7 per cent to €34.40.
In media stocks, Vivendi Universal fell 5.1 per cent to €54.55. The company said it was raising $1.5 billion by cutting about a third of its stake in BSkyB. French media broadcaster TF1, which was reported to be interested in buying a 25 per cent stake in Spanish peer Telecinco, fell 4.7 per cent to €28.20 and Havas Advertising was down 5.3 per cent to €8.42.
France's Lagardere, the world's biggest magazine publisher, fell 5 per cent to €44.22 even though it was sticking by its forecast of a rise of 5 to 12 per cent in operating profit for its media division.
In telecoms, Italy said it was extending the UMTS licences for third-generation mobile phone networks from 15 to 20 years. Companies that won the licences include Telecom Italia Mobile, Vodafone, Enel and France Telecom. All saw their shares fall as the sector suffered with technology. France Telecom lost 4.9 per cent to €44.30.
Versatel, the Dutch data communications group, plunged more than 13 per cent to €1.04 after it said sales would be lower this year than forecast.
Shares in Germany's HVB Group were virtually flat at €33.85 as Morgan Stanley downgraded the bank.
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