LONDON -- Europe's New Economy stocks made a comeback Friday, which helped drive the major indices upwards. Good results from
were enough to shake off the worries about the sector that followed
poor results at the beginning of the week.
In London, the
ended up 64 points, or 1.0%, at 6367 and the
closed up 56 points, or 1.7%, at 3412.
Inevitably, life was breathed back into fiber-optic companies such as
after the JDS Uniphase
announcement. Bookham rose 6.6% to
22.91 and Marconi climbed 5.2% to 877p.
Chip stocks, however, had a mixed day.
closed up 27p, or 4.1%, at 679p, but
dropped 6p, or 1.7%, to finish at 357.
The worst performer was palm-top maker
, which issued its second profits warning in little more than 18 months. Psion said its full-year profits will be "well below" expectations and the shares slumped 29% to 410p. The hand-held computer maker pointed the finger at the weak euro, a slow-down at its modem division and the high integration cost of a recent acquisition.
The big two telecom stocks also bounced back.
nearly cancelled out Wednesday and Thursday's combined losses as it rose 13p, or 4.8%, to 283, which made up nearly half of the FTSE 100's gain today. It's been a good few days for the telco: it picked up a cheap 3G license in Italy and confirmed that it was in talks with Ireland's
regarding the acquisition of its mobile phone division.
continued its recovery of late as it jumped 46p, or 6.2%, to 783 despite an ominous-sounding statement from the head of telecom regulator
, who said that, "If increased competition does not result in lower prices, I will introduce further measures to ensure this happens."
In the media sector, most of the attention was on
. The Anglo-Dutch publisher announced that it was joining together with
for $5.7 billion. Reed initially saw its share price drop on this news, but the stock rallied to end up 47p, or 8.0%, at 626.
Europe's other stock markets finished Friday solidly higher, as TMT shares jumped back in the driving seat. The
in Paris ended up 60.5, or 1%, at 6268.9 and the
in Frankfurt was up 140.3, or 2.1%, to 6908.2 late in German trading. The
index was up 171.4, or 3.8%, to 4744.6.
closed up 1.65 euros, or 2.9%, at 58.00 ($48.09), telecoms equipment maker
rose 3.00 euros, or 4.3%, to 73.50 and
closed up 0.88 euros, or 2.4%, to 38.31.
ended up 6.90 euros, or 5.8%, to 125.90 and
surged 2.59 euros, or 6.1%, to 44.79. DT will report earnings next Tuesday.
rose 1.70 euros, or 3.2%, to 55.00, after reporting better-than-expected third-quarter earnings. Rival
fell 1.11 euros, or 2.1%, to 50.89.