Nervousness ahead of Fed meeting hits TMTs

French drugs company Sanofi-Sythelabo received a 7.1 per cent shot in the arm after an international study found its Plavix anti-stroke drug reduced cardiac risk in patients who had already suffered a mild heart attack.

The doctor who led the research said the findings could lead to a significant improvement in the treatment of patients at risk of heart attack, stroke and cardiovascular death.

The shares closed at #57.20.

By contrast, biotech group Genset was in full retreat, falling 18 per cent to #14.53 on news that five more researchers involved with its Famoxin anti-obesity drug had quit. The company failed to reassure investors with its pledge to try to persuade some scientists to stay.

Germany's Bayer dipped 2.3 per cent to #48.70 as expectations grew that it was the most likely European company to buy the pharmaceuticals business of DuPont. Bayer's chief executive said last week that the DuPont unit could be an acquisition target.

Swiss-based Syngenta, the world's largest agrochemicals group, tumbled 8.2 per cent to 88.10 Swiss francs as the market took a dim view of news that 2001 sales had started slowly, in sharp contrast to activity a year earlier. The company was formed last November from the merger of the agribusinesses of Novartis and AstraZeneca.

Nervousness ahead of the US Fed meeting today weighed on technology, media and telecom stocks. In Paris, Alcatel fell 3 per cent to #36.80, France Telecom fell 5.2 per cent to #60.20 and broadcaster TF1 fell 4.2 per cent to #43.30. Wanadoo, the Internet offshoot of France Telecom, was halted limit down after shares had fallen almost 10 per cent in afternoon trade. They later closed off 9.6 per cent at #5.11, a record low and more than 75 per cent below their peak of #22.94. The annual results are due on Thursday.

Electronics and telecoms equipment maker Sagem was also halted limit down in low volume. It closed 13 per cent lower at #83.80. Late last month Sagem reported a rise in net profits for 2000 to #152 million and a sales growth target of 20 per cent for 2001.