In Europe Celesio, Lafarge, Holcim Rise

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

European stocks closed higher as confidence increased on optimistic outlook for the regional economy. Celesio acquired controlling stake in the largest Brazilian drug wholesaler. Lafarge and other cement makers increased after a German court lowered the antitrust fine.

[R]7:00 PM Frankfurt, Paris; 2:00 PM New York – European stocks closed higher as confidence increased on optimistic outlook for the region’s economy. Celesio acquired controlling stake in the largest Brazilian drug wholesaler. Lafarge and other cement makers increased after a German court lowered the antitrust fine.[/R]

Germany and France led gainers in the European trading on the optimistic outlook on the economy.

An index of confidence among consumers and business managers increased in June to 73.3 from a revised 70.2 in May according to the data released by the eurostat.

Russian stocks rebounded with the Micex index closing up 3%.

Gainers & Losers

Celesio AG increased 3.3% to 15.94 euros after the company acquired 54% stake in Brazil’s largest drug wholesaler Panpharma with an option to acquire more shares at a later date. Panpharma supplies drugs to 30,000 of the 52,000 pharmacies in Brazil with a revenues of 1 billion euros.

Deutsche Telekom increased 2.5% to 8.44 euros on the media reports that Vodafone may bid for the company’s subsidiary T-Mobile UK Limited.

Holcim Ltd increased 3.2% to Sfr 62.55 and Munich Re increased 3.8% to 97.05 euros after UBS recommended both companies.

Deutsche Lufthansa AG increased 3.6% to 9 euros after Der Standard said that European Commission has postponed its ruling of takeover of Austrian Airlines by the German carrier.

Novo Nordisk AS surged 6.8% after the European Association for the Study of diabetes clarified that the company was not part of the research to link insulin to cancer. The study concluded that Lantus insulin made by Sanofi-Aventis should be studied more after statistically significant patients using Lantus also had cancer.

Porsche SE increased 2.1% to 46.36 euros after the company rejected takeover overtures from Volkswagen and said that Qatar is close to bidding for the company stake.

Lafarge SA advanced 3.7% to 48.25 euros after its antitrust fine was lowered by a German court to 24 million euros from 86 million. The company recently completed 750 million euros bond offering with five and seven years of maturity.

Safran SA increased 1.6% to 8.87 euros after it received antitrust approval from European commission to buy 81% GE Homeland Protection for $580 million.

Areva SA increased 5.4% to 424.80 euros after the UK unit of E.ON AG said that it is comfortable with the technical design of the nuclear reactors of the company as it is likely to order new reactors by the end of the year. The company is expected to release first half revenue and comments at the end of July.

Europe Markets Review

In London FTSE 100 Index closed higher 53.02 or 1.25% to 4,294.03, in Paris CAC 40 Index increased 63.95 or 2.04% to close at 3,193.68 and in Frankfurt DAX index higher 108.62 or 2.27% to close at 4,885.09. In Zurich trading SMI increased 67.46 or 1.25% to close at 5,443.45.

DAX Index Movers

Metro AG led the decliners in the DAX index of 1.55% followed by losses in Commerzbank AG of 1.23%.

Deutsche Post AG led gainers in the DAX index with a rise of 3.94%, followed by increase in MAN SE of 3.74%, in BASF SE of 3.648%, in Muenchener Re AG of 3.63%, in Deutsche Lufthansa AG of 3.20%.

CAC-40 Index Movers

Alcatel Lucent led the decliners in the CAC-40 index of 2.32%.

Schneider Electric SA gainers in the CAC-40 index with a rise of 4.45% followed by gains in AXA of 3.84%, in Compagnie de Saint-Gobain SA of 3.79%, in Lafarge S.A. of 3.69%, in Veolia Environnement of 3.64%.

FTSE 100 Index Movers

Of the stocks in the FTSE 100 index, 80 increased, 22 declined and None were unchanged.

3i Group plc decliners in the FTSE 100 index with a loss of 2.06% followed by losses in Xstrata plc of 2.03%, in Thomas Cook Group plc of 1.89%, in British Airways Plc of 1.39% and in GlaxoSmithKline plc of 1.07%.

Lloyds Banking Group plc led gainers in the FTSE 100 index with a rise of 6.12% followed by increase in Prudential Public Limited Company of 5.89%, in Rio Tinto plc of 4.51%, in Barclays PLC of 4.31%, in BG Group plc of 4.12%.