European Closing Update: As in U.S. , Divergent Markets

LONDON -- As in the U.S., European markets saw tech shares slump, while old-economy issues faired better.

In London, the

FTSE 100

closed 36.7 points higher, or 0.6%, at 6,232.9, but the tech-heavy

Techmark

ended down 53.3, or 1.6%, at 3,344.1.

British Telecom

(BTY)

provided the feature of the day -- and was also one of the biggest losers. A rise in revenue and a reasonable set of annual figures cut little ice with investors, and using the time-honored maxim that a profit is never a profit until you take it, investors did just that. The share price consequently retreated from a high of

10.15 to finish 70p, or 7.1%, lower at 922 ($13.83).

The sector trend also had something to do with the fall in BT. High third-generation mobile phone costs and ever increasing competition are encouraging investors to seek pastures new.

Colt Telecom

(COLTY)

slumped 224p, or 9.9%, to

20.49, having been over 40 just six weeks ago, while

Kingston Communications

retreated 21p, or 3.1%, to

650.

Vodafone AirTouch

(VOD) - Get Report

continued to go its own way by moving against the trend and rising 4p, or 1.4%, to

265.

Tech stocks were mostly unloved, with

BATM Advanced Communications

falling 117p, or 3.2%, to

40.12, and

Logica

shed 95p, or 5.4%, to

16.55. The notable exception was

Bookham Technology

(BKHM)

, which rose 145p, or 1.9%, to

39.25.

Media stocks eventually succumbed to the downward pressure exerted on telecom and technology shares, and recent high-flyer

Pearson

managed to turn a gain of 44p into a loss of 3p, or 0.1%, at

21.23 and

BSkyB

(BSY)

, after moving up 38p at one stage, it slid away to close 133p lower, or 11.0%, at

11.71.

Reuters

(RTRSY)

managed to retain a modest gain to close 2p, or 0.2%, higher at

10.85.

So what kept the Footsie in the blue? Financial stocks featured

Barclays

(BCS) - Get Report

, up 32p, or 2.1%, to

15.88, and

Royal Bank of Scotland

chipped in with a rise of a more modest 2p, or 0.2%, at

10.82.

Pharmaceutical stocks were also strong performers.

Glaxo Wellcome

(GLX)

rose 43p, or 2.2%, to

20.11, while merger partner

SmithKline Beecham

(SBH) - Get Report

added 17.5p, or 2.0%, at 900.5.

Europe's other major stock markets ended mixed after trading in a tight range. The

Xetra Dax

in Frankfurt ended down 29.93, or 0.4%, at 7181.58 and the

CAC 40

in Paris finished near unchanged at 6451.97. The Neuer Markt's

Nemax 50

index closed down 95.14, or 1.4%, at 6797.50.

Big technology shares in Frankfurt erased early gains to close the session lower.

Epcos

(EPC) - Get Report

fell 1.00 euro, 0.7%, to 146.00 ($130.56), software maker

SAP

(SAP) - Get Report

dropped 17.65 euros, or 2.9%, to 586.35. Europe's largest Internet service provider

T-Online

tanked 2.47 euros, or 5.9%, to 39.50.

Most German financial shares were able to book gains Thursday, as insurer

Allianz

surged 9.00 euros, or 2.2%, to 416.20,

Deutsche Bank

(DTBKY)

closed up 0.56 euros, or 0.7%, at 82.76 and

Dresdner Bank

(DRSDY)

ended 0.06 euros higher, or 0.1%, at 45.39.

European telcos, on the other hand, had an off day, with

Deutsche Telekom

(DT) - Get Report

, down 2.43 euros, or 3.9%, at 60.26,

France Telecom

(FTE)

4.00 euros lower, or 2.6%, at 151.00 and

Telefonica

(TEF) - Get Report

finished off 0.22 euros, or 1%, at 23.06.