Markets end turbulent week on a high note

European bourses ended a volatile week in upbeat mood, with the FTSE Eurobloc 100 index gaining 2.2 per cent at 1,082.78 for a net rise on the week of 3 per cent. The FTSE Eurotop 100 index rose 2.7 per cent to 2,982.78 and the FTSE Eurotop 300 index improved 2 per cent to 1,293.26.

Frankfurt rose 111.26 to 5,357.75 on the Xetra DAX index for a net gain on the week of 3.3 per cent.

Software leader SAP, bouncing back from marked weakness induced by a profits warning and subsequent dire results, rose €20.6 or 5.6 per cent to €387.70.

Utility Viag shot higher on a rumour the group was to acquire parts of Orange once the British mobiles phones group is absorbed by Mannesmann. Shares in the group, which is currently merging with Veba, jumped 75 cents to €17.40. Mannesmann lost a further €3.79 to €141.01 for a two-day decline of 11 per cent. Deutsche Telekom added €1.15 at €43.65 after it announced plans to spend $2 billion (€1.88 billion) on east European expansion.

Stockholm moved smartly ahead as Ericsson soared to an all-time high after the telecoms group reported a smaller-than-expected decline in third-quarter profits and gave upbeat forecasts. The general index rose 124.56 to 3,953.86.

Helsinki was firmly higher as Nokia climbed on strong third-quarter profits. The shares put on €5.42 to €95.90, as brokers upgraded earnings forecasts and target share prices for the telecoms equipment manufacturer. The Hex general index rose 307.61 or 3.8 per cent to 8,318.73.

Paris added a net 3.4 per cent on the week to close with the CAC-40 up 75.41 at 4,677.80. High technology stocks spearheaded the rally.

France Telecom, the largest stock in the Paris exchange, climbed €1.60 to €85.60. ST Microelectronics rose €2.90 to €80.70 and Alcatel €5.10 to €138.4.

Meanwhile TotalFina jumped €5.40 to €123.8 as tracker funds beefed up their portfolios. After its merger with Elf Aquitaine, Total will command an 11 per cent weighting in the CAC-40, second only to France Telecom.

Lafarge rose €5.65 or 6 per cent to €99.65, making it the top gainer in the CAC-40, thanks to a strong performance by its US arm.

Amsterdam produced the sharpest turn of speed among leading bourses, adding 11.68 at 549.27 on the AEX index.

Philips stayed in demand, rising €4.55 or 5.1 per cent to €94.50 after earnings upgrades at Goldman Sachs and Deutsche Bank following Thursday's strong third-quarter results.