Industrials Rise in Europe; Club Med Falls

123jump.com Staff
11 Jun, 2009
New York City

European stocks edged higher as more investors focused on the global economic recovery. Industrials, steelmakers and heavy equipment makers gained. Fiat SpA, the sixth largest automaker now focuses on integrating Chrysler and debt reduction.

[R]7:00 PM Frankfurt, Paris; 2:00 PM New York – European stocks edged higher as more investors focused on the global economic recovery. Industrials, steelmakers and heavy equipment makers gained. Fiat SpA, the sixth largest automaker now focuses on integrating Chrysler and debt reduction.[/R]

Stocks in Frankfurt and Paris gained for the second day this week on talks of global recovery. The Bank of England policy maker Andrew Sentance suggested that UK economy will recover no later than early 2010.

The International Energy Agency in Paris also lifted its global oil demand by 120,000 barrels to 83.3 million barrels, a first increase in ten months.

Steelmakers, cyclical stocks and industrials rebounded in trading. Positive comments from brokers lifted MAN and Tognum.

Fiat SpA added 2% to 7.95 in Milan after it won the auction for Chrysler. The sixth largest automaker has more than 6 billion in debt due this year and has tough task of integrating the U.S. automaker that has weak product line, high operating cost and falling market share.

Gainers & Losers

SMA Solar Technology AG increased 1.8% to €58.85 after the company declared dividend of 1 euro per share and guided sales increase for the second quarter of at least 65% between 145 million euros and 165 million euros.

The company makes photovoltaic inverters used in solar power plants.

Talks of economic recovery lifted ArcelorMittal 3.8% to €25.80.

MAN SE added 6% to €46.71 on positive comments from Bank of America.

Tognum AG increased 3.2% to €10.16 after it increased its dividend 17% to 70 euro cents a share and the chief executive said that the company intends to pay between 30% and 50% of the group net profit.

Club Med dropped 4% to €9.18 after it reported first half loss increased to €22 million.

Carrefour SA declined 3.7% to €29.78 on market rumors that the company may miss its earnings target.

Valeo SA surged 8.5% to €15.24 after the auto parts maker on the rating revision from Bank of America.

Earnings Review

Club Mediterranee SA, the French destination resort operator reported first-half revenues fell 4% to €724 million from €755 million a year ago. Net loss in the quarter was €22 million compared to €9 million a year ago.

Club Mediterranee SA, in the last one year traded as high as €34.49 in June 2008 and as low as €8.91 in March 2009. Based on the yesterday’s closing price of €9.56 the company has market cap of €244.40 million.

Europe Markets Review

In London FTSE 100 Index closed higher 25.12 or 0.57% to 4,461.87, in Paris CAC 40 Index increased 19.67 or 0.59% to close at 3,334.94 and in Frankfurt DAX index higher 56.08 or 1.11% to close at 5,107.26. In Zurich trading SMI increased 47.46 or 0.87% to close at 5,483.85.

DAX Index Movers

Fresenius SE led the decliners in the DAX index of 1.54% followed by losses in Beiersdorf AG of 0.59%, in Deutsche Lufthansa AG of 0.42%, in Fresenius Medical Care AG & Co. KGaA of 0.16%.

MAN SE led gainers in the DAX index with a rise of 7.16% followed by gains in Deutsche Boerse AG of 3.03%, in Daimler AG of 3.02%, in Salzgitter AG of 2.73%, in Hannover Rueckversicherung AG of 2.57%.

CAC-40 Index Movers

Carrefour SA led the decliners in the CAC-40 index of 3.67% followed by losses in Air France-KLM of 2.78%, in Vivendi S.A. of 1.02%, in Pernod Ricard SA of 0.73%, Accor SA 0.59%.

Dexia SA gainers in the CAC-40 index with a rise of 7.09% followed by gains in ArcelorMittal of 3.78%, in Renault SA of 3.71%, in BNP Paribas ACT.A of 2.57%, in Schneider Electric SA of 2.09%.