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LONDON -- Europe's New Economy stocks made a comeback Friday, which helped drive the major indices upwards. Good results from

JDS Uniphase


were enough to shake off the worries about the sector that followed

Nortel Network's


poor results at the beginning of the week.

In London, the

FTSE 100

ended up 64 points, or 1.0%, at 6367 and the

Techmark 100

closed up 56 points, or 1.7%, at 3412.

Inevitably, life was breathed back into fiber-optic companies such as

Bookham Technology





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.

ARM Holdings


closed up 27p, or 4.1%, at 679p, but

ARC International

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.

British Telecom


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

Reed Elsevier

. 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

Xetra Dax

in Frankfurt was up 140.3, or 2.1%, to 6908.2 late in German trading. The

Neuer Markt's


Nemax 50

index was up 171.4, or 3.8%, to 4744.6.

In Paris,



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.

France Telecom


ended up 6.90 euros, or 5.8%, to 125.90 and

Deutsche Telekom


surged 2.59 euros, or 6.1%, to 44.79. DT will report earnings next Tuesday.

In Frankfurt,



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.