In Europe Rhodia, Linde, Michelin Rise

123jump.com Staff
03 Aug, 2009
New York City

Commodities and energy related stocks in Europe gained on the expectations of lower dollar and rising prices. Banks in Europe edged higher. Rhodia and Linde surged on earnings. French auto sales increase lifted Peugeot and Renault.

[R]8:00 PM Frankfurt, Paris; 2:00 PM New York – Commodities and energy related stocks in Europe gained on the expectations of lower dollar and rising prices. Banks in Europe edged higher. Rhodia and Linde surged on earnings. French auto sales increase lifted Peugeot and Renault.[/R]

With each day passing by and with every 1% increase in market indexes, investors are showing increasing willingness to bid stocks higher. The benchmark indexes in Germany and France are at 9-month high.

In Paris CAC 40 Index increased 51.53 or 1.50% to close at 3,477.80 and in Frankfurt DAX index higher 94.71 or 1.78% to close at 5,426.85.

New car registration in France in July increased 3.1% to 188,635 according to French Carmakers’ Association. For the year car sales declined 0.6% despite the government incentives to buy smaller cars.

Gainers & Losers

Aleo Solar AG surged 32% to 8.97 euros after Robert Bosch GmbH made a voluntary public takeover at 9 euros a share. The company also agreed to acquire 39.4% of shares from institutional investors. The takeover also lifted shares of Solon SE by 8% to 10.95 euros.

ArcelorMittal increased 5.4% to 26.60 euros after commodities linked stocks gained on manufacturing industry report in China.

BNP Paribas SA added 2.7% to 52.53 euros after HSBC and Barclays reported better than expected earnings.

JCDecaux SA, an outdoor advertising company decreased 2% to 14.11 euros after first-half revenues fell 13.3% to €925.4 million from €1.07 billion a year ago. Net profit in the first-half fell 95.6% to €4.4 million or €0.02 per diluted share compared to net profit of €100.9 million or €0.45 per share a year ago.

L''Oreal SA decreased 0.7% to 60.40 euros after first-half sales rose 1.4% to €8.77 billion but increased only 0.4% on a constant currency basis. Like-for-like sales fell 3.2%. Like-for-like sales for the luxury products fell 13%. Like-for-like sales for professional Products fell 5%. Like-for-like sales for consumer products rose 1%.

Linde AG added 3.2% to 68.30 euros after the company reported first half sales declined 12.5% to 5.47 billion euros and operating profit in the first declined 12.2% to 1.1 billion euros. The company estimated recovery in the second half. Sales in the Western Europe declined 11.2% and in the Americas decreased 8.2% in the first half.

Metro AG, the German retailer decreased 1% to 40.24 euros after first-half revenues fell 3.2% to €30.5 billion from €31.5 billion a year ago. Net loss in the first-half was €53 million or €0.16 per diluted share compared to net profit of €468 million or €1.43 per share a year ago.

Michelin SCA the premium tire maker increased 5.8% to 53.60 euros after first-half revenues fell 13.4% to €7.1 billion from €8.2 billion a year ago. Net loss in the first-half was €122 million compared to net profit of €430 million a year ago.

PSA Peugeot Citroen increased 5.4% to 22.43 euros after auto sales in July increased 5%. Renault SA surged 14% to 34.11 euros.

Rhodia SA, the specialty chemicals maker increased 8.5% to 8.30 euros after first-half revenues fell 21% to €1.91 billion from €2.41 billion a year ago. Net loss in the first-half was €174 million or €1.74 per diluted share compared to net profit of €77 million or €0.76 per share a year ago.

Safran SA, the provider of aero-engines increased 0.9% to 10.94 euros after first-half revenues rose 1.8% to €5.15 billion from €5.06 billion a year ago. Net profit in the first-half rose 80% to €281 million or €0.70 per diluted share compared to net profit of €156 million or €0.38 per share a year ago.

Schneider Electric SA, the electrical equipment maker increased 0.7% to 64.19 euros after first-half revenues fell 13% to €7.75 billion from €8.95 billion a year ago. Net profit in the first-half fell 59% to €346 million or €1.43 per diluted share compared to net profit of €851 million or €3.54 per share a year ago.

Vallourec SA increased 4% to 96.03 euros after crude oil prices increased and number of rigs operating in the U.S. for the third week in a row. The maker of steel tubes and casings for the oil and natural exploration has traded as high as 190 euro and as low as 54 euros in the last one year.

Europe Markets Review

In London FTSE 100 Index closed higher 74.10 or 1.61% to 4,682.46, in Paris CAC 40 Index increased 51.53 or 1.50% to close at 3,477.80 and in Frankfurt DAX index higher 94.71 or 1.78% to close at 5,426.85. In Zurich trading SMI increased 16.74 or 0.28% to close at 5,967.43.

DAX Index Movers

Hannover Rue AG led the decliners in the DAX index of 2.42% followed by losses in Henkel AG of 1.59%, in Muenchener Rue AG of 0.85%, in METRO AG of 0.64%, in Merck KGaA of 0.54%.

CommerzBank AG led gainers in the DAX index with a rise of 4.52% followed by increase in Deutsche Boerse AG of 4.50% in Thyssenkrupp AG of 4.41%, in Bayer AG of 3.86%, in Daimler AG of 3.41%.

CAC-40 Index Movers

Pernod Ricard SA led the decliners in the CAC-40 index of 1.50% followed by losses in Carrefour SA of 0.73%, in L’Oreal SA of 0.67%, in Danone SA of 0.65%, in Veolia Environnement of 0.33%.

Renault SA gainers in the CAC-40 index with a rise of 13.99% followed by gains in Credit Agricole SA of 5.84%, in Michelin SCA of 5.80%, in PSA Peugeot Citroen SA of 5.40%, in ArcelorMittal of 5.35%.