London: European shares recovered some ground on Tuesday, bouncing after the losses made in the previous session when investors took flight from the high tech, media and telecoms sectors. But Paris saw two companies, outdoor advertising company JC Decaux and online brokerage Direct Finance, put a hold on their flotation plans, as the unsettled market conditions took their toll.A mixed tone on Wall Street gave little trading direction, with the technology-laden Nasdaq showing a loss of 54.60 points, while the broader Dow Jones Industrial Average index sported a slight gain of 9.24 points in late afternoon. The Dow Jones STOXX 50 index inched up 0.46 percent to 4,767.92. The London FTSE-100 index closed down 17.1 points, 0.27 percent, at 6,247.7 points. The Paris CAC 40 finished up 0.54 percent at 6,143.30 points. In Frankfurt, the DAX closed at 6,671.88, down 8.90 points.
In Paris, Internet broker Direct Finance abruptly halted a share issue planned for the next day and the Euronext Paris stock exchange simply said the issue would be held at "a later date." Tech stocks have suffered badly since profit warnings last week from from US PC maker Dell, chip specialist Intel and Apple, maker of the Macintosh. JC Decaux, which sells advertising on bus shelters, billboards and other outdoor media, said its flotation due in the autumn would be delayed.
The cautious tone, which pushed many investors to pick traditional conservative stocks, was illustrated by TotalFinaElf's new role as having the largest market capitalisation on the Paris bourse, replacing France Telecom. France Telecom tumbled 5.40 euros, or 5.0 per cent, to 103.10 as rumours that the company will soon bid for telecoms company Equant gathered momentum, speculation that again fuelled sharp gains for Equant shares, which closed 1.50 euros higher at 41.50. TotalFinaElf moved 7.70 euros higher to 178.60 as oil prices remain at high levels following the increased supply from OPEC, with many investors believing that prices are unlikely to fall in the winter months, dealers said.
In the London market, leading shares closed lower after a lifeless session marked by nervousness over the current domestic interest rate cycle, with the banking sector suffering from competition fears. Underlying market sentiment remained edgy due in part to stronger-than-expected retail price inflation data, which re-ignited concerns that domestic interest rates may go higher than the current 6.0 per cent.
Financial stocks remained under pressure as concern over competition in the sector was exacerbated by the launch of mortgage lender Halifax's new current account - which will pay 4.0 per cent gross interest on balances, compared with 0.1 per cent currently available from the major banks.
Copyright © 2000 Indian Express Newspapers (Bombay) Ltd.