European Closing Update: London Falters Late in the Day, but Continental Markets Climb - TheStreet

LONDON -- For almost all of Monday's session it looked like London's equity markets would make a good start to the last quarter of the financial year. But a closing auction program trade turned the whole picture on its head and ultimately the

FTSE 100

closed back below 6,300 at 6,284.50 -- a loss of 9.70 points from Friday.

For most of the session, the software and computer services sector led the way higher. Overall, the

techMARK 100

gained 47.15 points to 3,782.

CMG

and

Logica

, constituents of both the techMARK 100 and the main blue chip index, found themselves back in vogue on talk that they are about to benefit from their mobile phone messaging operations, known as SMS. CMG was the FTSE 100's biggest gainer as it soared 106p ($1.53), or 8.1%, to

14.15, while Logica followed close behind, rising 110p to

23.35.

Misys

, which develops and licenses software primarily to the financial and health services, went along for the ride for most of the session as it traded comfortable above 650p. But one trade for 23,000 shares in the end of day auction saw the stock close down 2.5p at 632.5. With total today's volume standing at 973,000 shares, this is clearly unrepresentative of what went on.

Telecom stocks tried to do their bit as well. Residential cable services supplier

Telewest Communications

(TWSTY)

benefited from talk that it is to "merge" with cable and telco operator

NTL

. The shares posted a 2.25p gain to 134.25 on the back of the rumors.

British Telecom

(BTY)

staged a decent bounce of 15.5p gain to 726.5, while fellow telco giant

Vodafone

(VOD) - Get Report

fell at the close to end 1.5p lower at 251.

Cable & Wireless

(CWP)

received a boost after it announced a voice over the Internet deal with

Nortel Networks

(NT)

. Its shares rose 5p to 970.

But it wasn't all sweetness and light. Beleaguered online auction site

QXL.com

(QXLC)

fell a further 1.5% to 48p as the company reported that shareholders had voted to approve the acquisition of

Ricardo.de

, the German website.

It was a mixed day among the banks.

Barclays

(BCS) - Get Report

racked up some early gains, but after hitting a session high of

19.11, the stock succumbed to profit taking and fell back to close 24p lower at

18.48. But

Lloyds TSB

Barclays

(LLDTY)

remained back in favor as it rose another 6p to 637.

Europe's other major stock markets were able to close higher Monday, as the

CAC 40

in Paris ended up 79.4, or 1.4%, at 6,349.3 and the

Xetra Dax

in Frankfurt was up 68.7, or 1%, at 6,866.8 late in the German session. However, the Neuer Markt's tech-heavy

Nemax 50

index was 70.4 higher, or 1.4%, at 5,125.6.

Telecoms were in positive territory, as

France Telecom

(FTE)

climbed 1.70 euros, or 1.4%, to 123.00 ($108.60), after announcing it plans to float wireless unit Orange by Christmas.

Deutsche Telekom

(DT) - Get Report

rose 1.05 euros, or 2.7%, to 40.02 and

Telefonica

(TEF) - Get Report

closed up 0.91 euros, or 4%, at 23.36.

Paris-listed network services outfit

Equant

(ENT) - Get Report

fell 0.67 euros, or 1.6%, to 40.58. Germany's

Infineon

(SMWAY)

rose 1.02 euros, or 1.9%, to 55.90, after the company announced it would purchase communication circuits maker

Ardent Technologies

for $42 million in stock.