While the FTSE Eurofirst 300 gained 0.2 percent on Friday to close at 1,313.20, it dropped 0.7 percent on the week thanks at least in part of a sell-off on Tuesday that was prompted by worries about the effects of an expected rise in Eurozone interest rates. Despite the down week for the equities markets as a whole, the telecommunications sector and stock exchange operators had positive a positive week.
The announcement on Friday by the New York Stock Exchange that it has agreed to purchase Euronext for €7.78 billion put an apparent end to the effort by Deutsche Borse to merge with the pan-European exchange. The announcement sent shares in Deutsche Borse down by 1.2 percent on the day, but the German exchange still ended the week up by 1.4 percent at €105.30. Euronext added 3.3 percent on the day and 2.7 percent for the full week, closing on Friday at €71.15.
In the telecommunications sector, Telefonica added 1.3 percent when Nomura reconfirmed its “buy” rating on the company and raised its fair value estimate to €15.30 from €14.50. Telecom Italia was up 2.6 percent on the week to €2.2270. Dresdner Kleinwort Wasserstein, disagreed with Nomura, recommending that its clients drop Telefonica in favor of Telecom Italia.
Elsewhere in the sector, France Telecom advanced by 3.5 percent during the week to €17.69, while Portugal Telecom was up 3.6 percent on the day and on the week to trade at €9.62 on rumors of possible bids. Telnor was up 6.7 percent on the week to NKr79.00.