Telecoms analysts went into overdrive yesterday as a results deluge brought the sector sharply into focus.

Nokia had some stern messages for the handset producers but Alcatel pleased investors in the heavier end of the equipment industry. By comparison, Deutsche Telekom's figures were unsurprising.

Nokia tumbled 10 per cent within seconds of producing strong second-quarter results but hinting at a third quarter slowdown. Understandably, the market focused on the overall tone of the statement.

The shares, which stood at €65 in June, ended 15.5 per cent or €8.85 lower at €48.30 with a near frantic 47.7 million shares changing hands. Swedish rival Ericsson came off SKr10 at SKr172.

In contrast, Alcatel produced a dazzling set of second-quarter figures and as a result rose €3 to €80.50 in volume of 14.7 million shares, after hitting an intra-day record of €84.

Deutsche Telekom rallied after early losses, but fell back in later trading following a steeper than expected decline in first-half profits. At 5.30 p.m. German time, the shares stood at €50, down €1.09, in Frankfurt. Negative broker comment following Wednesday's results statement sent DaimlerChrysler lower. Lehman Brothers, which expects the group to issue a profits warning before the end of the year, says it is "one to avoid". The stock ended off €1.09 at €50.

Paris trimmed gains as the Nasdaq opened weaker to end at 6,511.53 on the CAC 40 index, a rise of just €18.53. The biggest bluechip mover was Michelin, which at one point was suspended limit down after falling 10 per cent. It finished 9 per cent lower at €33.91 following the surprise warning it issued after the market closed on Wednesday.

Amsterdam was pulled lower by a 6.1 per cent slide at Philips that tracked the weak opening on the Nasdaq. The ended off €8.37 at €672.09. Elsewhere among blue chips, foods and detergents giant Unilever fell 80 cents to €49.40 and top financial Aegon came off 40 cents at €41.90. Telecoms leader KPN lost 42 cents at 41.