French Stocks Fall, Led by Alcatel, France Telecom, Valtech
By Florence Labedays
Paris, Feb. 28 (Bloomberg) -- French stocks fell, led by phone-equipment and computer-related companies such as Alcatel SA, amid further evidence a slowing U.S. economy will crimp growth in corporate earnings.
France's benchmark CAC 40 Index shed 59.19, or 1 percent, to 5378.57. The broader SBF 120 index rose 40.71 points, or 1 percent, to 3688.27, with more than three shares advancing for every two declining.
The Nasdaq Composite Index, which about two-thirds made up of computer-related shares, closed 4.4 percent lower yesterday.
The Nasdaq slid to its lowest level since December 1998 after reports signaled the economy is slowing and analysts at Goldman, Sachs & Co. reduced profit forecasts for more than 30 technology companies. Goldman's principal argument was that sales and profit estimates will likely fall for at least another quarter or two.
Alcatel SA, Europe's second-largest phone equipment maker, shed 1.43 euros, or 3.3 percent, to 42.6. STMicroelectronics NV, Europe's largest chipmaker, fell 1.4 euros to 35.85.
The following stocks are making significant gains or loses in French markets today. Stock symbols are in parentheses after the company names.
Accor SA (AC FP) shed 0.43 euro, or 1 percent, to 43.97. The hotel operator is in talks to buy Nikko hotel in Paris from Japan Airlines Co., French newspaper Les Echos reported, citing sources close to the issue. The shares shed 1.35 euros, or 3 percent, to 44.4.
Eiffage SA (FGR FP), a French construction company, is suspended pending a statement, Euronext Paris SA said. Eiffage, which built the Eiffel Tower, declined to comment. The company is scheduled to report 2000 profit this evening and may announce changes in its shareholding structure, analysts said. The Paris- based company is currently majority owned by BNP Paribas SA and Eiffage 2000, an employee shareholding. The shares yesterday added 0.1 euro, or 0.1 percent, to 68.9.
France Telecom SA (FTE FP) tumbled 2.6 euros, or 3.8 percent, to 66.75. Vodafone Group Plc, the world's biggest mobile phone company, said it agreed to sell its almost 10 percent stake France Telecom back to the French company for 11.63 billion euros to cut its debt.
Havas Advertising (HAV FP) shed 0.22 euro, or 1.4 percent, to 15.38. The ad industry's fourth-biggest company is scheduled to report full-year earnings after market close.
Lafarge SA (LG FP) shed 1.6 euros, or 1.5 percent, to 102.8. The world's largest maker of building materials and Australia's Boral Ltd. will pay $50 million for control of a gypsum unit of Siam Cement Pcl, the Thai company said. A joint venture of the two companies will today sign a non-binding agreement to buy a 71 percent stake in Siam Gypsum Industry Co., currently a wholly owned unit of Siam Cement, Thailand's largest industrial group said in a filing to the Bangkok stock exchange.
Netgem SA (NETG FP) fell 0.53 euro, or 3 percent, to 16.88. The maker of boxes and software that enable Internet access via television sets said full-year profit rose more than five fold to 6.3 million euros.
Valtech SA (VALT FP) fell 0.65 euro, or 6.6 percent, to 9.15. The Internet business consultant said full-year profit rose to 2.70 million euros from 100,000 euros in the year earlier. Full- year sales more than tripled to 85.80 million euros.
Vivendi Universal SA (EX FP) shed 0.7 euro, or 1 percent, to 69.4. Europe's biggest publicly traded media company is looking to sell its Havas name, French business daily Les Echos reported. The Paris-based company wants to sell its 10 percent stake in Havas Advertising SA, the world's fourth-biggest advertising company, which could bring in as much as 416 million euros, according to Les Echos. American Express could be interested in acquiring the stake, Les Echos said. |
