LONDON -- Nortel Network's (NT) failure to meet Wall Street's highest expectations for third-quarter revenue wiped billions of value off anything remotely connected to the telecom sector in Europe.
finished 71 points lower Wednesday, or 1.1%, at 6368, while the
closed 84 points down, or 2.4%, at 3458.
Hardest hit was fiber-optic component manufacturer
. This illiquid stock is volatile during the best of times, but was even more so Wednesday. Bookham was the FTSE 100's biggest loser, closing 13.3% lower at
24.24 ($35.15). However, this was a marked improvement because at one point it had slipped to a session low of
also received a kicking, with the shares closing 8.4% lower at 870p.
In the telecom sector,
finished down 2.5% at 278p and
was down 4.0% at
ended down 4.3% at 754p following reports that talks with
about combining their business services have ended without agreement.
all came under
scrutiny. The broker decided it didn't like what it saw and cut its ratings on all three. As a result, Logica plunged 7.2% to
20.20, Sema shed 3.0% to 980, and CMG fell 2.2% to
Normally drugs can help change the mood when all else is looking despondent, but Wednesday the sector was weighed down by
, which fell 80p to
31.70 after lowering its estimates for full-year revenue. This fed through to
, down 18p to
, down 11p to 912.
Europe's other stock markets also finished Wednesday lower, as the
in Paris ended down 45.8, or 0.7%, at 6277.9 and the
in Frankfurt was off 34.9, or 0.5%, at 6767.9 late in German trading. The Neuer Markt's tech-heavy
index was down 71.7, or 1.5%, at 4634.7.
In Paris, telecom-equipment maker
tanked 6.50 euros, or 8%, to 74.40 ($62.26), after rival
reported slower sales.
Telecom operators were mostly higher, however, as
ended up 1.90 euros, or 1.6%, to 123.00 and
rose 0.40 euro, or 1%, to 42.60.
Technology shares rolled back some of Tuesday's gains, as
fell 3.75 euros, or 1.6%, to 230.25,
dropped 1.00 euro, or 1.1%, to 88.50, and
was down 2.21 euros, or 4.3%, at 48.99.
And ahead of its third-quarter earnings Thursday,
fell 1.15 euros, or 2.2%, to 52.35. Rival
rose 0.05 euro, or 0.1%, to 53.95.