L'Oreal, Carrefour, Bouygues Rise; VW Falls

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

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[R]7:00PM Frankfurt, Paris; 1:00 PM New York – L’Oreal closed higher after it reported lower than expected decline in earnings. Aeroprts de Paris gained after it offered positive outlook. Hermes International declined after first half earnings fell. French builder Bouygues SA surged after it reported better than expected earnings in most of its business divisions.[/R]

Euro zone confidence index increased to 80.6 in August from 76 in July according to the latest statistics from the eurostat. Steelmakers, consumer products companies and select industrial companies advanced.

In London FTSE 100 Index closed higher 39.55 or 0.81% to 4,908.90, in Paris CAC 40 Index increased 44.61 or 1.22% to close at 3,693.14 and in Frankfurt DAX index higher 47.02 or 0.86% to close at 5,517.35. In Zurich trading SMI increased 42.39 or 0.69% to close at 6,211.58.

Gainers & Losers

Accor SA edged higher 0.03% to €37.01 after the hotels and services group chief executive in interview with Bloomberg television suggested that spinoff of its Voucher Division may yield higher earnings multiple. The company has no plans to sell its motel 6 and Sofitel units. Chief executive Gilles Pelisson also offered a cautious outlook and does not see any significant improvement in sales for the year.

Aeroports de Paris SA rallied 2.5% to €61.30 after the airport management company reported first half net income increased 1.3% to €127.3 million.

Arcandor AG jumped 4.7% to €0.222 after Handelsblatt reported that the tourism and retail group said Thomas cook stake may be sold sooner than expected.

Banca Monte dei Paschi di Siena SpA decreased 2.4% to €1.50 after the bank said first-half net interest income fell 7.8% to €2.0 billion from €2.17 billion a year ago. Net profit in the first-half fell 40% to €332.1 million compared to net profit of €552.4 million a year ago.

Bouygues SA surged 6.6% to €34.29 after the builder and mobile phone operator said first-half sales decreased 2% to €14.9 billion. Operating profit fell 28% to €789 million and net profit fell 22% to €547 million. Operating results improved in the second quarter compared to the first.

Carrefour SA added 4.6% to €33.14 after the retailer said first-half revenues fell 1.6% to €41.3 billion from €41.9 billion a year ago. Net loss in the first-half was €58.1 million compared to net profit of €746.5 million a year ago.

Chargeurs SA fell 4.4% to €4.78.

Continental AG gained 0.3% to €29.02. Daimler AG the luxury carmaker rose 1.0% to €31.83.

Deutsche Bank AG the global investment bank added 1.5% to €48.63.

Deutsche Lufthansa AG surged 0.9% to €11.24 an aviation company bags Austrian Airlines after EU antitrust OK.

Eurazeo SA climbed 0.8% to €38.49 an investment company said first-half revenues fell 8.6% to €1.81 billion from €1.98 billion a year ago. Net loss in the first-half was €120.9 million compared to net profit of €241.7 million a year ago.

Hermes International SCA plunged 3.0% to €100.90 after the luxury goods group said first-half revenues rose 7.6% to €874.9 million. Net profit in the first-half fell 7% to €125.4 million compared to net profit of €134.9 million a year ago.

L''Oreal SA gained 1.6% to €18.70 after the cosmetics company said first-half revenues rose 1.4% to €8.77 billion from €8.65 billion a year ago. Net profit in the first-half fell 14.3% to €1.08 billion or €1.86 per diluted share compared to net profit of €1.26 billion or €2.11 per share a year ago.

Beiersdorf increased 2.9% to 36.24 after L’Oreal reported a less than expected decline in earnings.

Societe Generale SA added 0.9% to €56.08.

Volkswagen AG slipped 1.4% to €136.89 after investors worried that common share may not be liquid enough and as investors shift their focus to preference non-voting share. the preferred stock increased 2.5% to €64.56.

VW in a statement said that Qatar based fund has acquired 6.78% stake in the company and has a right to increase its stake in the company to 17% when fully exercised. When fully exercised, the public float of common shares will decline to 9.9%

All of 105.2 million shares are available for trading in public float whereas only 27% or 79.2 million shares of common stocks are available for public trading.

DAX Index Movers

Volkswagen AG led the decliners in the DAX index of 2.44% followed by losses in Deutsche Boerse AG of 2.00%, in K+S AG of 1.684%, in Merck KGaA of 1.15%, in Muenchener Rue AG of 0.91%.

Commerzbank AG led gainers in the DAX index with a rise of 5.11% followed by increase in Beiersdorf AG of 2.40%, in Fresenius SE of 2.05%, in Deutsche Lufthansa AG of 1.70%, in Deutsche Post AG of 1.66%.
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CAC-40 Index Movers

Essilor International SA led the decliners in the CAC-40 index of 1.78% followed by losses in GDF Suez SA of 0.84%, in Electricite de Strasbourg SA of 0.69%.

STMicroelectronics N.V. gainers in the CAC-40 index with a rise of 12.40% followed by losses in Bouygues SA of 9.14%, in Lagardere SCA of 7.64%, in L''Oreal SA of 7.44%, in Carrefour SA of 4.56%.