Technology and telecoms companies started the week on an upbeat note after last week's falls, although volumes were subdued.
Chipmakers were boosted by news that two major Korean companies had increased prices for contract chips for the second time this month. Infineon, which lost 15 per cent last week, was yesterday up 6.4 per cent to €24.30, helping to pull Siemens up 6.8 per cent to €72. The gains strengthened in the afternoon as the Nasdaq opened higher. STMicroelectronics closed up 4.9 per cent to €36.43.
The big telecom equipment makers Nokia and Alcatel added 5 per cent apiece while among telecom operators, Deutsche Telekom led the way with a gain of 4.9 per cent to €19.60. IT services company Cap Gemini rose 6.5 per cent to €82.70 and Dassault Systemes was up 5.8 per cent to €54.50.
But the Swiss technology company Kudelski, which makes digital TV equipment such as chipcard decoding systems, slipped 1.5 per cent to SFr100.50 after updating its forecasts. It said it expected revenues to grow by more than 25 per cent in the current financial year and net profit to be in line with expectations. Its largest customer is EchoStar, which is purchasing its rival DirecTV to create the largest US pay-TV group. Its shares are down 43 per cent this year.
Media shares averaged a gain of 4 per cent on the FTSE Eurotop index, led by Vivendi Universal. Its shares rose 6.8 per cent to €57.35 as it announced details of its purchase of the film and TV interests of USA Networks. USA Networks will give Vivendi a distribution outlet in the US for its large film and TV catalogue acquired through its merger with Seagram last year.
Pan-European aerospace company EADS pushed up 4.2 per cent to €14.06 as its subsidiary Airbus Military announced that eight European nations are to sign a deal today for 196 transport aircraft worth €16 billion.
