Around the World's Markets: Frankfurt

THE GERMAN stock market closed more than 2 per cent weaker as substantial losses in its most heavily weighted stock, Deutsche Telekom, and in utility Veba dragged it lower in late trade.

The DAX closed 2.39 per cent down at 5,189.92 points. "The 5,200-point line has to hold, otherwise it doesn't look too good," one trader said. He said any further losses today could prove damaging, especially now that the index has broken a key support level at 5,200 points. Utilities Veba and Viag fell victim to profit-taking.