European Auto Sales Up; MAN Stake in SinoTruk

Mukesh Buch
15 Jul, 2009
New York City

European auto sales in June increased on the government incentives but declined 11% in the first half of this year. Germany based MAN acquired 25% stake in China based Sinotruk. The retailer Casio Guichard second quarter sales declined 1.9%.

[R]7:00 PM Frankfurt, Paris; 2:00 PM New York – European auto sales in June increased on the government incentives but declined 11% in the first half of this year. Germany based MAN acquired 25% stake in China based Sinotruk. The retailer Casio Guichard second quarter sales declined 1.9%.[/R]

European markets closed higher as automakers gained on increased sales in June. Intel latest quarterly results also bolstered confidence.

In Paris CAC-40 Index increased 89.40 or 2.90% to close at 3,171.27 and in Frankfurt DAX index higher 146.75 or 3.07% to close at 4,928.44.

Gainers & Losers

The European Automotive Manufacturers Association reported that new car registration increased 2.4% in June were 1.46 million. Sales in the first half declined 11% to 7.43 million vehicles.

Separately, Reuters also noted that Volkswagen is looking to invest $1 billion to expand its manufacturing in Mexico.

Volkswagen surged 9.2% to 252.17 euros BMW increased 1.9% to 28.63 euros and Daimler AG added 5.4% to 27.87 euros.

PSA Peugeot Citroen 1.4% to 17.65 euros after sales in June increased 191,638 units and Renault SA surged 5.2% to 25.03 euros after sales increased 3.4% to 141,932 units.

RWE AG increased 3% to 55.82 and E.ON added 2.4% to 24.40 euros after the two companies are involved in a project to connect UK wind farms to the German grid network.

Repower Systems AG increased 4.1% to 113.50 euros after the company is in a deal sell offshore wind turbines to Ormond Energy Ltd.

MAN SE surged 4% to 46.14 euros after the company agreed to acquire 25% stake in China based Sinotruk (Hong Kong) Ltd for 560 million euros.

Celesio AG increased 3.1% to 17.30 euros and Kuka AG surged 3.5% to 10.43 euros.

Casio Guichard-Perrachon SA added 2.9% to 46.52 euros second quarter sales declined 1.9% to 6.82 billion and sales in France dropped 5%.

Valeo SA increased 6.7% to 14.88 euros after the company announced a reorganization plan.

Europe Markets Review

In London FTSE 100 Index closed higher 108.78 or 2.57% to 4,346.46, in Paris CAC 40 Index increased 89.40 or 2.90% to close at 3,171.27 and in Frankfurt DAX index higher 146.75 or 3.07% to close at 4,928.44. In Zurich trading SMI increased 108.28 or 2.02% to close at 5,473.33.

DAX Index Movers

Fresenius SE led the decliners in the DAX index of 0.68%.

Volkswagen AG led gainers in the DAX index with a rise of 9.48% followed by increase in Daimler AG of 4.95%, in BASF SE of 4.63%, in Deutsche Boerse AG of 4.45%, Commerzbank AG of 4.32%.

CAC-40 Index Movers

Essilor International SA led the decliners in the CAC-40 index of 0.88%.

Alcatel Lucent gainers in the CAC-40 index with a rise of 10.96% followed by gains in STMicroelectronics N.V. of 7.28%, in ArcelorMittal of 6.54%, in AXA of 5.45%, in Renault SA of 5.12%.