European Stocks Weak; Heidelberger Falls

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

European real estate firms declined on weak rents and falling property values. Banks in Italy edged higher. Bourbon SA, the offshore marine service first half revenues increased 11.2%. Heidelberger Druckmaschinen AG finalized its

[R]9:00PM Frankfurt, Paris; 3:00 PM New York – European real estate firms declined on weak rents and falling property values. Banks in Italy edged higher. Bourbon SA, the offshore marine service first half revenues increased 11.2%.[/R]

European stocks edged lower after analysts cited cautious outlook on the economy and stretched valuations. Volkswagen and Daimler Benz declined at least 3% but Thomson SA surged 12% after the digital TV set-top box maker may sell its unit to a private equity fund based in California.

In London FTSE 100 Index closed lower 9.36 or 0.20% to 4,722.20, in Paris CAC 40 Index decreased 16.60 or 0.47% to close at 3,504.54 and in Frankfurt DAX index lower 40.84 or 0.75% to close at 5,418.12. In Zurich trading SMI decreased 18.85 or 0.31% to close at 6,007.55.

Gainers & Losers

Bourbon SA added 4.0% to €31.00 after the modern offshore marine services said first-half revenues rose 11.2% to €482.1 million from €433.6 million a year ago. Offshore division revenues rose 43.1% to €407.7 million from €285.0 million a year ago.

Gagfah SA plunged 4.0% to €6.34 after the publicly traded property company said first-half revenues rose 1.4% to €495.5 million from €489 million a year ago. Net loss in the first-half was €40.3 million or €0.18 per diluted share compared to net profit of €34.1 million or €0.15 per share a year ago.

Heidelberger Druckmaschinen AG surged 12% to €6.52 after the company renegotiated its revised credit facility of €1.4 billion. The consortium of banks will offer €550 million, KfW €300 million and the states of Baden-Wurttemberg and Brandenburg and the Federal government will offer guarantees for 90% of loans for €550 million.

Hypo Real Estate Holding AG gained 0.6% to €1.49 an international real estate financing company said first-half revenues fell 36.2% to €268 million from €420 million a year ago. Net loss in the first-half was €1.13 billion or €3.27 per diluted share compared to net profit of €160 million or €0.81 per share a year ago.

Publicis SA increased 4.3% to 25.97 euros after it agreed to acquire Internet advertising agency Razorfish from Microsoft.

DAX Index Movers

Volkswagen AG led the decliners in the DAX index of 6.83% followed by losses in Daimler AG of 4.16%, in Bayer AG of 1.65%, in E.ON AG of 1.64%, in Linde AG of 1.63%.

Allianz SE led gainers in the DAX index with a rise of 1.22% followed by increase in CommerzBank AG of 1.01%, in Deutsche Bank AG of 0.85% in BMW AG of 0.71%, in Adidas AG of 0.57%.

CAC-40 Index Movers

Alcatel Lucent led the decliners in the CAC-40 index of 2.88% followed by losses in Suez Environnement SA of 2.49%, in PPR SA of 2.46%, in ArcelorMittal of 2.02%, in LVMH Moet Hennessy Louis Vuitton SA of 1.43%.

Dexia SA gainers in the CAC-40 index with a rise of 5.64% followed by gains in Lafarge SA of 2.03%, in Accor SA of 1.58%, in Vallourec SA of 1.39%, in Pernod Ricard SA of 0.87%.