Indexes in Frankfurt, Paris Up 2%

123jump.com Staff
29 Apr, 2009
New York City

European stocks closed higher lifted by a rise in banks and cyclical companies. Siemens earnings lifted German stocks and BNP Paribas and Michelin supported a rise in Paris benchmark index. SAP fell after it reported a drop in earnings. ArcelorMittal led decliners in Paris.

[R]9:00 PM Frankfurt and Paris – European stocks closed higher lifted by a rise in banks and cyclical companies. Siemens earnings lifted German stocks and BNP Paribas and Michelin supported a rise in Paris benchmark index.[/R]

Earnings in Germany lifted the benchmark index to a high not seen in three months. The DAX index surged 2.1% after Siemens AG reported better than expected earnings and Allianz met its earnings expectations. In Paris, CAC-40 index increased 2.2% after banks surged and earnings lifted stocks of Michelin and France Telecom.

Siemens surged 8.2%, Munich Re added 6.6% after JP Morgan recommended the stock Allianz SE added 4% to 70 euros after it reported 41% decline in first quarter earnings to 1.3 billion euros.

SAP AG declined 3.7% and led the index decliners after it reported revenue decline of 3% and net income dropped 16%.

Continental AG increased 7.7% to 19.83 euros after it reported revenues decline of 35% and smaller than expected loss. The company also provided better than expected outlook.

Conergy AG, the second largest solar energy company surged 28.8% to 85 euro cents after it reported improved sales March.

DAX Gainers & Losers

In Frankfurt trading, the DAX index increased 2.1% or 97.14 to 4,704.56 and of the 30 stocks in the index, 21 increased and 9 declined.

SAP AG led decliners in the index with a fall of 3.7% followed by losses in Bayer AG of 3.2%, in Adidas AG of 2.1%, in Volkswagen AG of 1.8% and in ThyssenKrupp AG of 0.9%.

Siemens AG led gainers in the DAX index with a rise of 8.2% followed increase in Muenchener Rueckversicherungs AG of 6.3%, in Deutsche Lufthansa of 6.2%, Deutsche Boerse of 4.3% and in E.On AG of 4.2%.

CAC-40 Gainers & Losers

The CAC 40 index increased 2.2% to 3,116.94.

Michelin led gainers in the CAC-40 index with a rise of 7.4% followed by increase in Pernod Ricard of 6.8%, in BNP Paribas of 6%, in Credit Agricole of 5.5% and Peugeot of 4.6%.

ArcelorMittal led decliners in the CAC-40 index with a fall of 3.7% followed by losses in Suez Enviroment of 2.2%, in PPR of 1% and in Saint Gobain of 0.3% and in Danone of 0.1%.

European Earnings Review

ArcelorMittal, the world’s biggest steelmaker said first quarter revenues fell 49% to $15.1 billion from $29.8 billion. Net loss in the quarter was $1.06 billion or 78 cents per diluted share compared to net profit of $2.37 billion or $1.68 per share a year ago.

ArcelorMittal, in the last one year traded as high as €19.00 in June 2008 and as low as €18.16 in March 2009. Based on the yesterday’s closing price of €18.67 the company has market cap of €25.51 billion.

Bayer AG, Germany’s largest drug maker said first quarter revenues fell 7.5% to €7.9 billion from €8.54 billion. Net income in the quarter fell 44% to €425 million or €0.91 per diluted share compared to net profit of €762 million or €1.44 per share a year ago.

Continental AG, the European auto- parts manufacturer said first quarter revenues fell 35% to €4.3 billion from €6.64 billion. Net loss in the quarter was €267.3 million or €1.58 per diluted share compared to net profit of €166.8 million or €1.03 per share a year ago.

France Telecom SA first quarter earnings dropped 4.4% to 4.3 billion euros and net sales edged slightly lower to 12.69 billion euros. The company also agreed to increase its stake in France Telecom Espana in Spain to 99.85% from 81.6% for a price of 1.37 billion euros.

Finmeccanica SpA, the Italian aerospace and defense company said first quarter revenues rose 34% to €3.91 billion from €2.92 billion. Net Income in the quarter fell 17.6% to €98 million or €0.169 per diluted share compared to net profit of €119 million or €0.266 per share a year ago.

Finmeccanica SpA, in the last one year traded as high as €22.63 in April 2008 and as low as €8.37 in March 2009. Based on the yesterday’s closing price of €10.87 the company has market cap of €6.28 billion.

Renault SA revenues dropped 31% to 7.08 billion euros from 10.23 billion euros.

Cie. Saint-Gobain SA reported its first quarter revenues declined 15% to 8.78 billion euros and the company recently raised 1.45 billion euros to rebuild its capital.

Sanofi-Aventis, France’s largest drug maker said first quarter revenues rose 3% to €7.1 billion from €6.9 billion. Net income in the quarter rose 16% to €2.18 billion or €1.67 per diluted share compared to net profit of €1.88 billion or €1.43 per share a year ago.

Sanofi-Aventis, in the last one year traded as high as €51.25 in May 2008 and as low as €36.06 in October 2008. Based on the yesterday’s closing price of €42.83 the company has market cap of €56.25 billion.

SAP AG, the world’s biggest maker of business-management software said first quarter revenues fell 3% to €2.397 billion from €2.46 billion. Net income in the quarter fell 16% to €204 million or €0.18 per diluted share compared to net profit of €242 million or €0.21 per share a year ago.

Siemens AG, Europe’s largest engineering company said second quarter revenues rose 5% to €18.95 billion from €18.0 billion. Net profit in the quarter rose 150.5% to €962 million or €1.10 per diluted share compared to net profit of €384 million or €0.42 per share a year ago.

European Markets

In London FTSE 100 Index closed higher 93.19 or 2.27% to 4,189.59, in Paris CAC 40 Index increased 65.92 or 2.16% to close at 3,116.94 and in Frankfurt DAX index higher 97.14 or 2.11% to close at 4,704.56. In Zurich trading SMI increased 43.63 or 0.85% to close at 5,152.72.