Europe: Roche, Danone, Lagardere Rise

Darlington Musarurwa
15 Apr, 2010
New York City

European markets closed higher after China reported a surge in economic expansion and U.S. industrial production gained. Roche Holding AG sales increased 6%. Groupe Danone SA first quarter sales rise 8.3%. Lagardere SCA may sell 20% stake in Canal Plus.

[R]7:00 PM Frankfurt, Paris; 1:00 PM New York – European markets closed higher after China reported a surge in economic expansion and U.S. industrial production gained. Roche Holding AG sales increased 6%. Groupe Danone SA first quarter sales rise 8.3%. Lagardere SCA may sell 20% stake in Canal Plus.[/R]

European markets opened higher after China reported 11.9% economic growth in the first quarter and Greece edged closer to tap the emergency aid offered by the EU-IMF coalition. Currency and bond speculators now focused on Portugal debt and worried that the nation may need assistance.

Greek 10-year bonds gained in trading to 7.32%, close to 7.5% before the announcement of the bailout terms and 10-year Portugal bonds spiked to 4.5%.

The ASE Index in Athens surged 2.1%. Three largest banks in Greece; EFG Eurobank Ergasias SA, Piraeus Bank SA and Alpha Bank SA surged at least 5%.

In London FTSE 100 Index closed higher 28.95 or 0.50% to 5,825.20, in Paris CAC 40 Index increased 15.55 or 0.38% to close at 4,073.25, in Frankfurt DAX index higher 19.39 or 0.31% to close at 6,297.79. In Zurich trading SMI increased 42.69 or 0.62% to close at 6,959.28.

Gainers & Losers

Atos Origin SA rose 1.2% to €39.92 after the company’s shares were upgraded to “neutral” from “underweight” at HSBC Holdings Plc.

Danone SA decreased 2.0% to €45.67 after the maker of yogurt said first quarter revenues rose 8.3% to €3.98 billion from €3.67 billion a year ago. Total sales rose 7.0% on a like-for-like basis. Fresh dairy division sales rose 9.4% to €2.32 billion from €2.12 billion a year ago and rose 7.6% on a like-for-like basis.

Groupe Outremer Telecom SA fell 4.6% to €4.90 after the telecommunications operator said 2009 revenues fell 3% to €175.5 million from €180.7 million a year ago. Net loss for the year was €5.9 million or €0.28 per diluted share compared to net profit of €2.7 million or €0.13 per share a year ago.

Gerresheimer AG rose 3.3% to €26.81 after the stock was upgraded to “overweight” from “neutral” at HSBC Holdings.

JCDecaux SA advanced 2.4% to €21.83 after the seller of outdoor advertising was upgraded to “neutral” from “underperform” at Exane BNP Paribas.

Lagardere SCA fell 0.6% to €32.46 after the pay-television operator may be ready to sell its 20% interest in pay TV concern Canal Plus, according to Les Echos, citing Credit Suisse as a source, according to Dow Jones Newswire.

Munich Re rose 0.2% to €122.85 after the reinsurer was upgraded to “market perform” from “underperform” at Sanford C. Bernstein & Co.

Natixis SA the French bank rose 0.9% to €4.13.

Roche Holding AG gained 2.8% to Sfr177.5 after first quarter revenues increased 6% to Sfr 12.2 billion.

Total SA rose 0.6% to €43.78.

Vivendi SA the communications and entertainment conglomerate rose 0.4% to €20.05.

Wirecard AG added 2.3% to €7.96 after the maker of electronic payment and risk management software announced that it has confirmed its fiscal year 2010 operating earning guidance from €70 million to €75 million.

DAX Index Movers

Bayer AG led the decliners in the DAX index of 1.84%, followed by Siemens AG of 0.41%, in Metro AG of 0.38, in Allianz SE of 0.37%, and in RWE AG of 0.37%.

Deutsche Post AG led gainers in the DAX index with a rise of 3.65%, followed by increase in Deutsche Lufthansa AG of 2.15%, in K+S AG of 1.81%, in Deutsche Bank AG of 1.51%, and in SAP AG of 1.27%.

CAC-40 Index Movers

Lagardere SCA led the decliners in the CAC-40 index of 2.66%, in Danone SA of 1.64%, in AXA of 0.91%, in Vallourec SA of 0.88% and in Carrefour SA of 0.59%.

Dexia SA gainers in the CAC-40 index with a rise of 4.24%, in Cap Gemini SA of 2.79%, in Essilor International SA of 1.44%, in Societe Generale SA of 1.25% and in Vivendi SA of 1.20%.