Yahoo rattles European tech stocks
SingTel dips, News Corp. gives up gains
By Gareth Vaughan and Mariko Ando,
CBS MarketWatch
Last Update:10:18 AM ET Jan 12, 2000
Indications
World Markets
LONDON (CBS.MW) -- European tech stocks such as ISP
Freeserve PLC and cellular phone maker Nokia Oyj fell
Wednesday after Internet portal Yahoo's CFO warned investors
in a conference call Tuesday that its revenue growth
momentum is unsustainable.
"There's concern that the long term growth
implied in current valuations (of tech stocks)
is too high," said Gary Dugan,
London-based European equity strategist at
JP Morgan. However he added that there's
still "exceptional" amounts of money
chasing tech stocks.
Yahoo (YHOO: news, msgs) also posted its
fourth quarter results, declaring a 2-for-1
stock split and topping profit forecasts for
the15th consecutive quarter, but its shares
plunged in evening trading in the U.S. See
full story.
-- In London shares of Britain's biggest ISP
Freeserve (FREE: news, msgs) descended
36.25 pence, or 7.2 percent, to 468.5 pence
in volume of 2 million.
-- Down in Madrid Spain's Terra Networks (TRRA: news, msgs)
subtracted 1.5 percent during morning trading but rebounded
in the afternoon, rising 2.65 euros, or 4.1 percent, to 67.65
euros. Volume was 1 million.
-- In Paris shares of Alcatel SA (ALA: news, msgs), the telecom
equipment maker, lost 4.2 euros, or 1.9 percent, to 214 euros
with 974,900 shares changing hands.
-- Shares of computer chip maker STMicroelectronics NV (STM:
news, msgs) fell 1.4 euros, or 1 percent, to 139.1 euros.
Volume was 806,275.
-- Elsewhere in Paris shares of telecom group Equant NV (ENT:
news, msgs) ascended 3.3 euros, or 3.2 percent, to 107.5 in
volume of 989,200. Goldman Sachs upgraded Equant to
"market outperformer" from "market performer" and raised its
price target on the stock to $115 from $100. See full story.
QXL, Vodafone lower; Marks & Spencer gains
-- Back in London online auctioneer
QXL.com PLC (QXLC: news, msgs) sank
100 pence, or 7.7 percent, to 1198
pence in volume of 58,930. QXL.com
said it would pay $10.9 million (6.6
million pounds) in stock to buy
Denmark's Jubii Auktion and has signed
a exclusive deal with Danish search
engine and directory service, Jubii A/S.
The Bank of England's interest rate setting Monetary Policy
Committee (MPC) meets Wednesday and Thursday and most
observers expect it to hike the U.K.'s base rate from its current
level of 5.5 percent. JP Morgan's Dugan said he expects a 25
basis point rate hike when the MPC's decision is unveiled
Thursday.
-- Elsewhere in London troubled retailer Marks & Spencer PLC
(MASPY: news, msgs) gained 15.25 pence, or 5.25 percent, to
306 pence. Volume was 23.35 million. Marks & Spencer said its
like-for-like sales for the 15 weeks to Jan. 8 fell 5.3 percent
from the same period in the previous year, which wasn't as big
a fall as many analysts had expected.
-- Shares of Vodafone AirTouch PLC (VOD: news, msgs), the
world's biggest mobile phone operator, added 1 pence to
298.75 pence. Volume was 57.8 million. Tuesday Vodafone
unveiled its global mobile data and Net strategy as its hostile
takeover battle with Germany's Mannesmann AG continues. See
full story.
Mannesmann, Vodafone's target, was quick to attack the
British-based group's strategy. "Vodafone's projections of
increased revenue per user serve to confirm the insufficient
value of a hostile offer that fails to compensate shareholders
for Mannesmann's superior Internet,data and telecommerce
future," Mannesmann's chairman, Klaus Esser, said in a
statement. Shares of Mannesmann fell 0.55 euro to 235 euros
in Frankfurt trading. Volume was 188,777. |
