European Midday Update: Mixed Bourses Reflect Uneven Tech Action - TheStreet

LONDON -- European markets looked schizophrenic Wednesday morning as investors appeared to be of two minds.

In the U.K., by midday the

FTSE 100

was down 15.10 points to 6737.40, while the

Techmark 100

was down 36 points to 4067.

The mood of the market was encapsulated by the action in blue-chip IT stocks

Logica

and

Sema

. Logica fell 28p to

21.47 ($31.13) after what looked like very strong pretax results, as analysts apparently fear there's something nasty lurking in the figures. A similar fate befell Sema on Tuesday, but today bargain hunters were picking up the stock. Technically, major support is placed around the

10.00 level, which makes buying attractive from a risk/reward perspective. The shares recovered 23p to

11.44.

Telecom stocks were traded heavily as

British Telecom

(BTY)

fell on news that

Moody's Investors Service

has cut the company's credit rating from AA1 to A2. Although Moody's says BT's outlook is now "stable," the shares slumped 30p to 874.

Vodafone

(VOD) - Get Report

managed to shrug off talk that

Hutchison Whampoa

may sell its remaining 3.4% stake in the company. The most heavily weighted stock in the blue-chip index was down just 1p to 291. Analysts at

UBS Warburg

are bullish on the stock, saying: "We think that Vodafone has turned a major corner -- acting in a way that should improve its ability to create value in the world of cellular once subscriber growth has peaked."

Europe's Continental bourses were mixed, as the

CAC 40

in Paris was down 24.84 to 6831.92, but the

Xetra Dax

in Frankfurt was up 8.05 to 7403.12. The

Neuer Markt's

tech-heavy

Nemax 50

index was 31.6 higher to 6395.8.

German tech and telecom shares were once again weighing on the Dax, with

Siemens

down 2.57 euros to 185.43 ($165.09) and

SAP

(SAP) - Get Report

6.88 euros lower to 300.71.

Deutsche Telekom

(DT) - Get Report

slipped 0.35 euro to 46.72.

Elsewhere, telcos fared better, as

Telefonica

(TEF) - Get Report

rose 0.19 euro to 23.94 and

France Telecom

(FTE)

gained 0.20 euro to 144.70.

Paris-listed network services firm

Equant

(ENT) - Get Report

rose 1.3 euros to 53.00, amid reports the company was again in merger talks with

Infonet

(IN)

.

French oil company

Total Fina Elf

(TOT) - Get Report

fell 1.20 euros to 176.30, despite reporting that first-half profit more than doubled.