Tech, oil stocks lift Europe

November 22, 2001 Posted: 1708 GMT

LONDON (CNN) -- Europe's major bourses closed firm on Thursday, after strong gains by technology and oil stocks.

London's FTSE 100 rose 0.6 percent to 5,345.9 and the CAC 40 blue chip index in Paris was up almost 1 percent to 4599.8, while Frankfurt's electronically traded Xetra Dax gained 0.6 percent to 5,345.9. 

Market Movers

FTSE 100 / FTSE 250 DAX 30 / DAX 100 CAC 40 / SBF 80

The pan-European FTSE Eurotop 300, a broader index of the region's largest stocks, was up 0.8 percent, with the technology sector up more than 4.8 percent.

The technology sector has gained sharply in recent weeks as many investors bet technology firms will benefit from an anticipated

economic recovery sometime in 2002.

Ericsson, the biggest supplier of mobile phone infrastructure, gained 7.3 percent, Nokia, the world's biggest mobile phone maker, rose 4.1 percent, Alcatel (PCGE), Europe's fourth-biggest telecom equipment maker, was up 3.8 percent, and Siemens (FSIE), Germany's biggest communications company, climbed 2.2 percent.

MMO2, the former mobile phone unit of British Telecommunications (BT-), soared 7 percent to 91 pence. Investment bank Deutsche Bank placed the newly listed firm, Europe's sixth-biggest mobile phone company, on its focus list and raised its share price target.

Deutsche Bank recommended investors "buy" the stock, saying the stock could hit a high of 136 pence in 12 months.

Infineon Technologies (FIFX), Europe's No. 2 chip maker, surged 9  percent while software giant SAP (FSAP) rose 2 percent. STMicroelectronics, Europe's biggest semiconductor maker, rose 3.8 percent.

Dutch-Belgian financial group Fortis shed 4.8 percent in Brussels after slashing its 2001 profit forecast by 60 percent, blaming poor stock markets for its flat earnings per share in the third quarter.

Oil stocks were strong as crude prices leapt more than a dollar to $19.80 a barrel in London as Russia and Norway moved closer to a deal with the OPEC crude oil producer cartel to cut supplies and diffuse a price war.

Oil stocks rose after the Organisation of Petroleum Exporting Countries said it was confident of agreeing on a deal with non-OPEC exporters to cut global oil supply.

Royal Dutch, which owns 60 percent of the world's second-largest publicly traded oil company, Royal Dutch/Shell, rose 1.4 percent. Shell Transport & Trading (SHEL), which owns the remainder of Royal Dutch/Shell, gained 0.9 percent.

BP (BP-), the world's third-largest oil company, rose 2.1 percent in London, Britain's third-largest oil company Enterprise Oil (ENT) soared 4.6 percent, while France's Total Fina Elf (PFP) climbed 1.4 percent in Paris.

Deutsche Lufthansa (FLHA), Europe's second-biggest airline by passenger numbers, fell 2.7 percent after low-cost airline Ryanair  (RYA) said it had chose Frankfurt's Hahn airport as its second base on the continent to challenge the dominance of the German national airline.

Market Movers

TechMark 100 Nemax 50 Nouveau Marché

In Amsterdam, the AEX index climbed 1.4 percent and the SMI in Zurich was 0.7 percent higher, while Milan's MIB30 index gained 0.4 percent.

In the U.S. on Wednesday, stocks fell after a series of profit disappointments raised questions about whether a two-month rally can resume when Wall Street fully returns to work next week.

The second straight day of losses erased the last gains from a Monday  surge that propelled the Dow Jones industrial average into bull market territory. Markets in the U.S. are closed Thursday for Thanksgiving and will shut down three hours early on Friday.

The Nasdaq composite index slipped 0.3 percent to 1,875.05, while the Dow Jones industrial average dipped 66.7 points, or 0.7 percent, to 9,834.68.