European Indexes Ease; Hennes & Mauritz Falls on Sales Weakness

Arthi Gupta
31 Mar, 2011
New York City

The European indexes declined after inflation rose to 2.6% in March. Infineon planned to invest $160 million in Malaysian expansion. Inmarsat agreed to acquire Norway-based Ship Equip International A.S. for $159.5 million.

[R]1:30 PM Frankfurt – The European indexes declined after inflation rose to 2.6% in March. Infineon planned to invest $160 million in Malaysian expansion. Inmarsat agreed to acquire Norway-based Ship Equip International A.S. for $159.5 million.[/R]

U.S. indexes traded mixed ahead of key economic data and most Asian indexes gained barring China.

Investors focus on the Irish banks’ stress test results scheduled to be released later in the day. Bank of Ireland and Allied Irish Banks trading is temporarily suspended on the Irish stock exchange, pending the results of the stress tests.

Irish newspaper The Irish Independent reported this morning that the Irish government will pump in between €20 billion and €25 billion to its major banks to bolster their finances.

Foreign Minister Moussa Koussa, one of the most senior figures in Qadhafi''s government, has fled to Britain, reports said.

Britain''s Foreign Office confirmed the defection and said in a statement that Koussa traveled to London “under his own free will.”

In Paris CAC-40 index declined 14.78 or 0.37% to 4,009.66 and in Frankfurt DAX index edged higher 0.96 or 0.01% to 7,058.11.

Euro-zone annual inflation rose to 2.6% in March from 2.4% in February, a flash estimate published by Eurostat showed. German retail sales unexpectedly dropped 0.3% on a monthly basis in February on a calendar and seasonally adjusted basis following the 0.4% increase in January, the Federal Statistics Office said.

Infineon Expands Production in Malaysia

Infineon Technologies AG, the German semiconductors and system solutions maker said it will invest $160 million this year to expand its production capacity, research and development and to upgrade its manufacturing facilities in Malacca, Malaysia.

The investment will add 350 jobs in Malacca in 2011 and increase the company''s capacity to produce power semiconductors for energy efficiency applications.

Inmarsat Acquires Ship Equip International

Inmarsat plc, the mobile satellite communications services provider said it will acquire Norway-based Ship Equip International A.S. for $159.5 million. Ship Equip is a provider of VSAT maritime communications services to the shipping, offshore oil & gas and fishing markets.

Gainers & Losers

Addex Pharmaceuticals SA fell 2.74% to Sfr10.65 after the Swiss biopharmaceutical company said it initiated a Phase IIa clinical trial to evaluate dipraglurant in patients with Parkinson''s disease levodopa-induced dyskinesia, or PD-LID.

Aareal Bank AG gained 2.56% to €22.83 after the Germany-based real estate bank reported fiscal year 2010 net income surged 55% to €76 million or 1.78 euros per share compared with €49 million or 1.14 euros per share a year earlier.

DryShips, Inc. dipped 0.60% to $4.93 after the operators of dry bulk carriers reported fourth quarter total revenues increased 10% to $215.82 million from a restated $196.43 million in the same quarter last year. Net income in the quarter soared 939% to $99.74 million or $0.29 per share compared to a restated $9.60 million or $0.02 per share in the prior-year quarter.

H & M Hennes & Mauritz AB plunged 3.42% to SEK 209.20 after the Swedish retailer said that group''s sales, excluding VAT increased 9% in local currencies. Converted into SEK, sales decreased 1% to SEK 24.50 billion compared with SEK 24.85 billion last year.

Vossloh AG dropped 0.80% to €94.54 after the rail infrastructure provider reported fiscal year 2010 sales improved 15.1% to €1.35 billion with nearly half of the increase coming from consolidation of the acquired Rail Services business unit.

For the full year, earnings advanced 10.9% to €97.51 million from €87.9 million in 2009. Earnings per share advanced to 7.322 euros from 6.57 euros and included 0.40 euros per share related to reversal of accruals recognized in connection with the divestment of the Infrastructure Services business unit.

Zurich Financial Services Group fell 0.65% to Sfr257.90 after the Swiss multi-line insurance provider said it currently estimates aggregate claims of about $500 million for the five natural disasters that hit the Asia-Pacific region since the beginning of the year.