LONDON -- A late surge by
and a good start on Wall Street managed to lift the
, which ended up 29.6 points, or 0.5%, to 6,365.3. The
finished 9.3 firmer, or 0.3%, at 3,635.8.
Telecom stocks were always likely to grab the spotlight Monday with the start of the German auction for third-generation mobile telephone license auctions. With recent talk suggesting that the licenses would cost significantly less than recent estimates, expectations were high that the sector would have a good session.
However, a profits warning from Scottish Power's telecom and Internet unit
put paid to that. Shares in the company slumped 67p, or 30.4% to 153 ($2.30), meaning the company has seen over 80% wiped off its value since its shares hit a high of 855p less than four months ago.
Other carriers such as
were tarred with the same brush, falling 56p, or 10.5%, to 479 and 105p, or 4.8%, to 20.85 pounds respectively.
was buoyed by renewed reports that it is about to pursue a merger, this time of equals, with Spain's
to end 17p higher, or 2%, at 882. Although investors probably shouldn't get too excited. "This rumor comes around every couple of months," said a trader at one European house in London. Telefonica closed down 0.35 euro, or 1.5%, at 22.70 ($19.42).
late surge saw the stock close 14.75p, or 5.3%, higher at 295 -- enough to lift the main index by around 40 points.
Shares from the media sector failed to shine.
slumped by 182p, or 9.1% to 18.28 pounds after the international media group, perhaps best known for publishing the
, announced a rights issue to fund the 1.7 billion pound acquisition of the U.S. educational group
National Computer Systems
. The new shares are to be priced at just 10 pounds, so the slide was not too surprising.
Europe's other major bourses started the week firmly in the positive after the technology companies such as
continue to make a comeback. The
in Paris was up 115, or 1.8%, at 6,530. Late in the German session, the
in Frankfurt was up 103, or 1.5%, at 7,232. The Neuer Markt's tech-heavy
index, however, was down 14, or 0.3%, at 5,211.
Nokia rose 0.22 euro, or 0.5%, to 48.23 ($48.23), although the shares are still over 15% down from the level before the company issued the warning last week about third-quarter earnings. Other large technology gainers included Siemens, up 6.19 euros, or 3.8%, to 167.64, and
, up 1.45 euros, or 3.1%, to 48.20.
In Frankfurt, retailer
rose 0.99 euro, or 2.3%, to 45.00 following German press reports that it is in talks with
to exchange some of its chains for the U.S. retailers Sam's Club business.