Calm European Markets; Richemont, Aegon Gain

123jump.com Staff
14 May, 2009
New York City

Markets in Germany and France closed nearly flat. Richemont surged 6% after it reported better than expected earnings. Aegon NV soared 6.4% after it reported lower than expected net loss. SAB Miller and offered cautious outlook and Generali net plunged 89%.

[R]9:00 PM Frankfurt, Paris – Markets in Germany and France closed nearly flat. Richemont surged 6% after it reported better than expected earnings. Aegon NV soared 6.4% after it reported lower than expected net loss. SAB Miller and offered cautious outlook and Generali net plunged 89%.[/R]

Markets in Europe trade with little convictions as investors battle growing worries about the global economic outlook and rising sentiment in the banking industry. Banks and insurance attempted a rebound after a rally in stocks in New York.

In Paris CAC 40 Index increased 3.39 or 0.11% to close at 3,156.29 and in Frankfurt DAX index higher 10.86 or 0.23% to close at 4,738.47. In Zurich trading SMI increased 82.63 or 1.57% to close at 5,360.00.

Gainers & Losers

Aegon N.V. increased 6.4% to €4.07 after insurance company revenues declined 6% in the first quarter and reported lower than expected net loss.

Assicurazioni Generail SpA declined 0.6% to €16.07 after it reported first quarter net premium and profits declined. Net profit in the quarter plunged 89%.

CGG Veritas dropped 6.6% to €11.12 after the geophysics company reported first quarter revenues fell 2% and net declined 26%.

Compagnie Financiere Richemont SA surged 6.2% to Sfr 22 after jeweler and luxury watch maker reported full year revenues increased 2% and net profit fell 31%.

Credit Agricole SA declined 0.4% to €10.14 after the second largest bank in France reported net revenues declined 1.2% and net profit plunged 77%.

RWE AG increased 0.5% to €58.58 after the German utility giant reported net profit increase of 6%.

Telefonica SA declined 0.7% to €14.65 after the Spanish telecom operator reported net profit declined 13.3%.

Earnings Review

Aegon N.V., the insurer said first quarter revenues fell 6% to €8.64 billion from €9.17 billion a year ago. Net loss in the quarter was €173 million or €0.15 per diluted share compared to net profit of €153 million or €0.07 per share a year ago.

Aegon N.V., in the last one year traded as high as €4.52 in May 2008 and as low as €3.83 in March 2009. Based on the yesterday’s closing price of €4.22 the company has market cap of €6.38 billion.

Assicurazioni Generali SpA, Europe’s third-biggest insurer said first quarter net earned premiums fell 1.2% to €16.1 billion from €16.3 billion a year ago. Net profit in the quarter fell 89% to €104 million compared to net profit of €910 million a year ago.

Assicurazioni Generali SpA, in the last one year traded as high as €28.34 in May 2008 and as low as €9.71 in March 2009. Based on the yesterday’s closing price of €16.16 the company has market cap of €21.85 billion.

CGG Veritas, the geophysical company said first quarter revenues fell 2% to $851.2 million from $872.8 million a year ago. Net profit in the quarter fell 26% to $70.7 million or $0.46 per ADS compared to net profit of $95.5 million or $0.68 per ADS a year ago.

CGG Veritas, in the last one year traded as high as €36.90 in May 2008 and as low as €7.63 in March 2009. Based on the yesterday’s closing price of €11.19 the company has market cap of €1.68 billion.

Compagnie Financiere Richemont SA, the world’s largest jewelry maker said full-year sales rose 2% to €5.42 billion from €5.3 billion a year ago. Net profit in the quarter fell 31% to €1.08 billion or €1.337 per diluted share compared to net profit of €1.57 billion or €1.710 per share a year ago.

Credit Agricole SA, France’s second- largest bank said first quarter net banking income fell 1.2% to €4.06 billion from €4.11 billion a year ago. Net profit in the quarter fell 77.4% to €202 million compared to net profit of €892 million a year ago.

Credit Agricole SA, in the last one year traded as high as €20.10 in May 2008 and as low as €5.90 in March 2009. Based on the yesterday’s closing price of €10.23 the company has market cap of €22.39 billion.

Dexia SA, the Belgian-based bank said first quarter net profit fell 13% to €251 million or €0.14 per diluted share compared to net profit of €289 million or €0.25 per share a year ago.

Dexia SA, in the last one year traded as high as €4.75 in May 2008 and as low as €4.20 in March 2009. Based on the yesterday’s closing price of €4.30 the company has market cap of €7.57 billion.

RWE AG, the German utility operator said first quarter revenues fell 8% to €14.5 billion from €13.4 billion a year ago. Net profit in the quarter rose 6% to €1.7 billion or €3.28 per diluted share compared to net profit of €809 million or €1.45 per share a year ago.

RWE AG, in the last one year traded as high as €84.98 in June 2008 and as low as €46.39 in March 2009. Based on the yesterday’s closing price of €58.00 the company has market cap of €28.52 billion.

Telefonica, S.A., the Spanish telecom operator said first quarter revenues fell 1.4% to €13.7 billion from €13.9 billion a year ago. Net profit in the quarter rose 13.3% to €1.7 billion or €0.37 per diluted share compared to net profit of €1.5 billion or €0.33 per share a year ago.

DAX Index Movers

K+S AG led the decliners in the DAX index of 4.30% followed by losses in Metro AG of 2.70%, in Adidas AG of 2.21%, in Fresenius SE of 1.94%, in Deutsche Lufthansa AG of 1.90%.

Hannover Rueckversicherung AG led gainers in the DAX index with a rise of 4.74% followed by gains in Salzgitter AG of 4.34%, in MAN AG of 4.12% and BMW AG of 3.96% in Siemens AG of 2.90%.

CAC-40 Index Movers

Bouygues SA led the decliners in the CAC-40 index of 2.69% followed by losses in Vivendi SA of 2.32%, in TOTAL S.A. of 1.68% in GDF Suez SA of 1.34, in Unibail-Rodamco SA of 1.23%.

Compagnie de Saint-Gobain SA gainers in the CAC-40 index with a rise of 5.81% followed by losses in PSA Peugeot Citroen S.A. of 5.27%, in EADS NV of 4.21%, in Lafarge Cement Zambia Plc of 3.95% and in Renault SA of 3.78%.

Europe Markets Review

In London FTSE 100 Index closed higher 31.21 or 0.72% to 4,362.58, in Paris CAC 40 Index increased 3.39 or 0.11% to close at 3,156.29 and in Frankfurt DAX index higher 10.86 or 0.23% to close at 4,738.47. In Zurich trading SMI increased 82.63 or 1.57% to close at 5,360.00.