Alstom, a strong market over the past month, ran into a storm of selling after a warning about operating margins sent analysts scrambling to reassess their earnings targets for the heavy engineering group. By the close of a frantic session, Alstom was easily the worst-performing stock in the FTSE Eurotop 300 index, sliding 20.4 per cent to €13.50 in 11.5 million shares traded.
Stock overhang concerns blew up around RWE and the utilities leader swung steadily lower amid persistent talk that big insurer Allianz was teeing up a convertible bond linked to its 11.6 per cent stake in RWE. Allianz is keen to focus on core businesses as well as raise cash to smooth the integration of its Dresdner Bank acquisition. RWE came off 3.1 per cent at €42.80.
Weak results from British Petroleum plus another depressing day for crude prices sent the oil sector to the bottom of the FTSE Eurotop 300 index performance charts. With BP predicting even tougher final-quarter trading after announcing a steep third-quarter earnings fall, oil stocks clattered lower.
TotalFinaElf shed 2.7 per cent at €152, Royal Dutch 2.5 per cent at €55.75 and Eni 3.6 per cent at €13.51. Repsol lost 1.9 per cent at €15.80.
Disappointing third-quarter figures from Pirelli sparked a round of negative broker comment. In late trading the shares stood at €1.56, down 3 per cent.
Michelin held level but Continental shed 0.8 per cent to €11.41.
The first new issue in Milan since September 11 made a disappointing start. Negri Bossi, a plastic injection moulder, dipped to €2.72 in late trading, against a flotation price of €2.85.
Sportswear leader Adidas-Salomon pleased investors with solid third-quarter figures and a forecast that full year targets would be met. The stock surged 6.2 per cent to €66.03.
Technology stocks started the day positive in the wake of the good Cisco results, but later pared their gains. SAP was up 3.2 per cent at 128 in late trading.
