Selective blue chip buying sent Frankfurt smartly ahead to extend the German market's positive run to four consecutive sessions. Technology, motor and retail stocks supplied the main supports.
A strong start to the Nasdaq kept tech stocks active with Infineon turning in the day's top performance in the sector. The shares gained €5.30 or 7.8 per cent at €72.60. Siemens rose €2.52 to €168.77 and SAP €7.81 to €253.91.
Deutsche Telekom, unfazed by the news that the Xetra DAX benchmark index is to switch to free-float weightings in mid-2002, pushed ahead strongly in robust trading volumes.
The shares face a potential reweighting to less than half current levels. However, investors also learned that Telekom was to postpone the flotation of its T-Mobile mobile phone operations. Down from a March peak of €104.90, they rose €2.01 to €46.75.
Retailer Karstadt Quelle and sportswear group Adidas Salomon added €1.41 at €32.20 and 27 cents to €54.97 respectively after learning they were to remain components of the Xetra DAX index. The former also gained from an ABN-Amro upgrade.
The Xetra DAX index was up 99.67 or 1.4 per cent at 7,223.48 at 5.30 p.m. German time.
Paris trimmed gains to end 0.6 per cent higher as technology shares flourished but retailers fell back. The CAC-40 index rose 36.87 or 0.6 per cent to 6,569.31.
The Cisco results and Nasdaq's firmer tone encouraged technology shares. The biggest beneficiary in the CAC was chipmaker STMicroelectronics, up 4.4 per cent to €61.05. France Telecom rose 3.2 per cent to €137.70 and Alcatel 3.1 per cent to €80.85.
Consulting and IT services company Cap Gemini was volatile following the release of first-half results. The shares initially rose 8 per cent as investors focused on operating margin and sales, but a conference call to analysts showed the picture to be less rosy. Shares ended 1.6 per cent up at €192.10.
On the Nouveau Marche, Internet community site Multimania leaped 9.7 per cent to €23.25 on a new alliance with Real Networks of the US and rumours of a potential takeover. Amsterdam gained 5.53 to 683.86 on the AEX index after a powerful run by Philips and strong gains for chemicals leaders.
Philips rose €2.45 to €49 and 18.8 million shares traded as investors scrambled to buy Europe's technology leaders. KPN, the telecoms group, rose €1.03 to €37.50.
