European Midday Update: Nasdaq Fall Puts Pressure on Tech Stocks

LONDON -- The overnight fall in the Nasdaq was putting pressure on London technology stocks Friday morning.

The Techmark fell 24 points to 3659, as major tech stocks such as ARM Holdings (ARMHY) and Bookham Technology (BKHM) were sold off in response to the Nasdaq's weakness. ARM was down 17.5p, or 2.3%, at 757.5 ($11.44) and Bookham was down 141p, or 2.9%, at 4651.

On the opposite side of the coin were the oil and media sectors. With Saudi Arabia keeping the lid on OPEC oil production, the price of one-month Brent crude has risen to $26.90 and the price of three-month Brent to $27.22. All good news for those money-making machines like BP Amoco (BPA), which gained 14p to 596, and Shell (SC), up 10p at 541.5.

United News & Media (UNEWY) fell 95p to 850 on confirmation that Granada Media is to acquire United's TV interests -- Meridian Anglia and HTV -- for 1.75 billion. Trouble is, the market was hoping for a full-blown bid, so there's the smell of burnt fingers wafting around the market. Granada Media says it is not interested in bidding for Carlton Communications (CCTVY) either and Carlton was off 53p to 770. Granada Media rose 40p to 625.

The result of all this means the FTSE 100 by midmorning was up 18.7 points, or 0.3%, at 6370.80.

Pharmaceutical shares are also lending some support to the index, with Glaxo Wellcome (GLX) still responding to its solid interim results of Thursday with a fresh gain of 20p to 19.30. Merger partner SmithKline Beecham (SBH) was up 14p at 866 and AstraZeneca added 40p more to 29.60.

In the banks, Lloyds TSB announced this morning that pretax profits in the first half were slightly ahead of forecast this morning with profit before tax up 12% to 2.06 billion from last year's 1.85 billion. Analysts had predicted profits of between 1.95 and 2.01 billion. Earnings per share increased by 11% to 26.8p and the interim dividend by 15% to 9.3p per share. But there's no pleasing some people, who are now worrying about the pressure on margins. The shares dipped 10.5p to 575.5.

Airport operator BAA was given a modest thumbs-up to its first-quarter figures and the shares added 3.5p to 524. Profits were 3.6% higher during the period at 144 million against 139 million last year.

Europe's other bourses were mixed. The CAC 40 in Paris was down 32.86, or 0.5%, to 6478.67, while the Xetra Dax in Frankfurt was up 14.72, or 0.20%, to 7198.16.

Notably Nokia (NOK) managed to rebound somewhat after Thursday's slump of over 21% after the company said it sees third-quarter earnings below those of the second because of the timing of new product introductions. By midmorning, Nokia was up 2.96 euros, or 6.6%, at 47.74 ($44.40).

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