Dubai Offers 15% More for OMX

123jump.com Staff
26 Sep, 2007
New York City

Stocks across the European markets traded higher led by financial sector. FTSE 100 in London and DAX index in Frankfurt are trading 0.5% higher. Invesco in London said that it will move its listing to New York. Deutsche Borse traded higher after target price revision from Credit Suisse. OMX shareholders received 15% higher offer from Dubai.

[R]1:00PM London , 8:00AM New York - European equity markets opened higher on Wednesday, lifted by rallying financial stocks and following gains in Asia.[/R]

The FTSE Eurofirst 300 was up 0.5% to 1,536.54, Frankfurt’s Xetra Dax added 0.4% to 7,798.65, the CAC 40 in Paris gained 0.4% to 5,664.45 and London’s FTSE 100 climbed 0.6% to 6,434.8.

In London trading stocks were higher at mid-day trading as banks rallied. By mid morning, the benchmark FTSE 100 was up 59.9 points, or 0.9%, to 6,456.1, while the mid-cap FTSE 250 added 24.1 points, or 0.2%, to 10,877.3. At mid-day trading 85 stocks in the Index were trading higher.

Northern Rock led the gainers with a rise of 12% to 182p, after saying it had received a number of requests. Northern Rock confirmed on Tuesday that it has cancelled £60m dividend payout and added today that the bank has been approached by several parties about ”a variety of potential transactions” that may, or may not, lead to a takeover.

Royal Bank of Scotland rose 0.7% to 514p after it said its consortium with Fortis and Santander had increased its stake in Dutch takeover target ABN Amro to more than 8%. Elsewhere in the financial sector, Invesco, the Anglo-US fund manager, rose 5.4% to 665p after it proposed moving its primary listing to New York.

In Frankfurt trading DAX index at mid-day increased 0.47% or 36.81 to 7,806.25. Of the 30 stocks in index 21 are trading higher and 9 are lower.

Deutsche Börse, the German stock market operator, jumped 3 per cent to €96.20 after Credit Suisse lifted its target price from €107 to €115 and kept its ”outperform” rating after the company reported strong trading volumes throughout September. The note added that German exchange operator had boosted efficiency by restructuring and the new valuation reflected this, while traders share buyback announcements, and merger and acquisitions in the sector.

Further north, the spotlight was on Nordic bourse operator OMX. Borse Dubai and Nasdaq said they had agreed with key shareholders of OMX on a revised higher offer and secured nearly 48 percent of OMX shares through ownership and options.

Dubai increased its offer by 15% to SKr 32 billion or pay SKr265 per share higher than previous offer of SKr 230. Dubai with a stake of nearly 48% in OMX needs additional 2% to consume its deal to purchase the exchange. Largest shareholders Investor AB an Nordea have agreed to sell their stake in the exchange to Dubai.

Anglo Irish Bank, recently sold off over concerns about the economy, was the best performing of the eurozone lenders, up 2.5 percent to €12.40.

ASML, the Dutch maker of chip manufacturing equipment, rose 2.3 percent to €23.67 after confirming that none of its creditors had opposed its proposed €2.04-a-share capital repayment and reverse stock split. The company said the move was scheduled for September 28.


[R]6:00AM New York, 7:00PM Tokyo – Stocks in Tokyo rise. August trade surplus surges.[/R]

Japan stocks gained propped by forecast beating trade surplus figures for August. Financial companies also weighed in on gains on expectations weakening U.S. housing and retail markets will force a further rate cut.

In Tokyo trading Nikkei 225 rose 0.21% or 34.01 to 16,435.74. Retailer Dowa Holdings led the gainers with a rise of 7.35%.

According to the Finance Ministry August trade surplus soared to 743.2 billion yen on surging car and steel exports to Europe and the Middle East. Exports rose 14.5% compared to 11.5% in July. However, imports rose at 5.7%, sharply lower than rate 15% in July. The surplus quadrupled from a year ago.

Exports to the U.S. gained 4.6% and to the European Union also edged up by 15.6% from 13.1% in July. Shipment to China gained 23.8% from 20.6% in July led by a sharp rise of 88% in auto shipments.

The yen fell against the dollar at 114.83 from 114.78. The yen has risen more than 7% against the dollar since the end of June. Oil prices slipped 1.8% to $79.53 per barrel, the biggest fall since August 17. Metal prices also retreated. Zinc shed 0.6% and nickel declined 1.7%.

Of the Nikkei 225 stocks, Dowa Holdings led the gainers, climbing 7.32%, followed by a rise of 6.12% in Mitsubishi UFJ Nicos, 5.71% in GS Yuasa Corporation, 5.03% in Hitachi Zosen and 4.71% in Yokohama Rubber. Kajima Corporation led decliners with a loss of 7.58%. Inpex Holdings lost 5.83%, followed by NTT Docomo down 3.6% and Tokyo Dome Corp fell 3.15% respectively. Toyo Seikan slipped 2.77%.

Toshiba Corp jumped 4.2% ahead of earnings release and recent surge in nuclear reactor makers around the world.

Hino Motors close, 50% owned by Toyota, closed up 4%, after it raised its half year profit forecasts on rising demand from construction booms in Middle East and South America. Operating profit is estimated to rise 12% to 24 billion yen for the first six months ending September 30. Previously the company expected a 20% drop. Half year sales forecasts increased 9% to 66.5 billion yen.

Banks and realty groups closed higher on expectations that rate may be lowered in the U.S. after the October Federal Reserve meeting. Traders are expecting that interest rate may be lowered by 0.25%. The sentiment helped financial stocks to recover. Sumitomo Mitsui jumped 2.6%, Mizuho added 1.1%, and Sumitomo Realty increased 2.4%. Credit card processing service provider Aeon Credit Service soared 8.9%.

Retailers were in focus today after the news that Yamada Denki agreed to acquire Kimuraya Select and also raised its holding in Best Denki. Market has been expecting a consolidation in the industry.