Major European stock markets ended the year on Friday with smaller double-digit gains over the year 2004, propelled by buyout activity, a weaker dollar and corporate restructuring, though three markets closed the day's trading mixed.

In London, blue-chip shares lost some ground in the final session of 2005 but ended the year up 16 percent on 2004 with the FTSE 100 closing down 19.5 points at 5,618.8, below the year-high close of 5,638.3 achieved on Thursday.

Retailers were weak, giving up some of the gains made in recent days, with Sainsbury's, M&S, Morrison's and Kingfisher all falling.

Hilton Group shares fell 1.4 percent to 383.5 pence after it sealed a 3.3 billion pounds deal to sell its hotels to its US namesake.

In Paris, strong performers in a truncated session ahead of the New Year holiday included Antofagasta and BHP Billiton.

The CAC 40 index closed down 60 points to 4,714 in quiet exchanges on the final trading day of 2005.

Defense and aerospace group EADS was one of the main fallers, dropping two percent after it announced it was buying a 40 percent stake in German sonar group Atlas.

It is buying the stake from BAE Systems in a joint deal with German engineering group ThyssenKrupp, which is buying the other 60 percent.

Other fallers in Paris trading on Friday included Axa and Peugeot.

In Frankfurt, most European stock markets dipped on the final trading day of the year, and the German stock market was no exception and the DAX index was marked 27.84 points lower at 5,408. 36, dragged down by fresh losses on Wall Street.

Leading the losers, were Commerzbank, Siemens, Bayer, Allianz and E.ON.

Meanwhile, bucking the trend on Friday were shares in flag- carrier Lufthansa, drug group Schering, Deutsche Post, Altana and Henkel.

In the currency market, the US dollar went slightly down against the euro, ending at 1.1844 dollars to a euro from 1.1841, the dollar remained the same against the Japanese yen at one dollar to 117.82.

The greenback dipped against the British sterling, closing at 1. 7228 dollars to a pound from 1.7173.

Source: Xinhua