Weak Insurers in Europe; Germany Prefers Magna

123jump.com Staff
02 Sep, 2009
New York City

European markets closed lower as investors worry that more capital may be needed by the insurance companies to meet the EU requirements. Germany rejected revised bid from RHJ International for Opel. BMW and Daimler report a sharp fall in August sales in the U.S.

[R]7:00PM Frankfurt, Paris; 1:00 PM New York – European markets closed lower as investors worry that more capital may be needed by the insurance companies to meet the EU requirements. Germany rejected revised bid from RHJ International for Opel. BMW and Daimler report a sharp fall in August sales in the U.S.[/R]

German automakers traded mixed on the last day auto rebate program. The government program encouraged people to exchange their old cars for new cars with a rebate of €2,500. The Federal Agency for Economy and Export Control said that the rebate program of €5 billion program has been completely exhausted.

In London FTSE 100 Index closed lower 2.15 or 0.04% to 4,817.55, in Paris CAC 40 Index decreased 10.31 or 0.29% to close at 3,573.13, in Frankfurt DAX index lower 7.45 or 0.14% to close at 5,319.84. In Zurich trading SMI decreased 38.93 or 0.64% to close at 6,089.24.

Germany rejected the revised bid from RHJ International for Opel unit of General Motors Company.

Gainers & Losers

Allianz SE the insurer fell 2.7% to €76.44 after the Association of British Insurers said that the industry may be required to raise £70 billion in new capital.

Alcatel Lucent SA sank 8.0% to €2.35 after the fixed-line phone networks shares launched bond offering that may be increased to €1 billion.

Areva SA decreased 0.07% to €376.60 after the nuclear reactor maker said first-half sales rose 5.7% to €6.52 billion from €6.17 billion a year ago. Net profit in the first-half fell 79% to €161 million or €4.55 per diluted share compared to net profit of €760 million or €21.45 per share a year ago.

BMW AG fell 2.9% to €30.07 after it reported weaker than expected sales in August in the US (declined 21.3%) and France and separately local reports suggest that the company is planning to expand its German operations.

Bollore SA declined 2.0% to €115.60 after the Agence France-Presse reported that the company is likely to seek a partner to bid for the fourth mobile network license in France.

Daimler AG tumbled 2.6% to €29.83 after the luxury automaker reported August sales decline in the U.S. of 10.5% to 18,734 vehicles.

Deutsche Lufthansa AG an aviation company declined 2.3% to €10.56.

Eiffage SA declined 4.3% to €43.01 after the construction and concessions group said first-half sales fell 0.2% to €6.51 billion from €6.52 billion a year ago. Net profit in the first-half fell 64.3% to €50 million compared to net profit of €140 million a year ago. Societe Generale downgraded the stock today.

Fraport AG slid 2.7% to €33.71 after the owner of Frankfurt Airport delays the construction of third terminal according to a report by Die Welt.

Freenet AG slid 4.8% to €8.62 after the internet and telecom operator was downgraded to “underweight” from “neutral” at HSBC Holdings Plc.

Neopost SA dropped 2.7% to €55.68 after the maker of mailroom equipment said second quarter sale decreased 1.8% to €228.2 million for the second quarter.

Pierre & Vacances SA the resort operator advanced 3.8% to €54.40 after the company appointed Sven Boinet as its new chief executive.

RHJ International SA lost 2.5% to €4.99 after German government rejected its revised bid for Opel division of GM. Germany prefers to sell the company to Canada based Magna International Inc.

Salzgitter AG plunged 4.8% to €60.43 after the steel technology industry was downgraded to “underperform” from “selected list” at Cheuvreux.

Technip SA the operator of gas and oil engineering fell 4.1% to €40.56.

Theolia SA dropped 7.6% to €4.33 an energy company said first-half sales rose 89% to €104.9 million from €55.4 million a year ago. Net loss in the first-half was €14.1 million or €4.55 per diluted share compared to net loss of €26.2 million or €21.45 per share a year ago.

ThyssenKrupp AG lost 3.0% to €22.11 after the technology company poised to seal stainless future sources.

Volkswagen AG increased 3.2% to 128 after its August sales in the U.S. increased.

DAX Index Movers

Salzgitter AG led the decliners in the DAX index of 4.01% followed by losses in Deutsche Post AG of 3.04%, in Commerzbank AG of 2.97%, in Fresenius SE of 2.31%, in BMW AG of 1.90%.

Volkswagen AG led gainers in the DAX index with a rise of 2.78% followed by increase in E.ON AG of 2.00%, in Muenchener Rue AG of 1.76%, in Deutsche Boerse AG of 1.53%, in SAP AG of 1.17%.

CAC-40 Index Movers

Alcatel-Lucent led the decliners in the CAC-40 index of 7.33% followed by losses in Dexia SA of 5.09%, in Air France - KLM of 2.85%, in PSA Peugeot Citroen SA of 2.67%, STMicroelectronics N.V. of 2.66%.

TOTAL SA gainers in the CAC-40 index with a rise of 1.60% followed by gainers in GDF Suez SA of 1.37%, Credit Agricole SA of 1.28%, in Danone SA of 1.15%, in Electricite de Strasbourg SA of 0.83%.

FTSE 100 Index Movers

Of the stocks in the FTSE 100 index, 36 increased, 64 declined and 2 were unchanged.

Legal & General Group Plc decliners in the FTSE 100 index with a loss of 8.66% followed by losses in Lloyds Banking Group Plc of 6.23%, in BT Group Plc of 4.01%, in Royal Bank of Scotland Group Plc of 3.96%, in Vedanta Resources Plc of 3.95%.

BP Plc led gainers in the FTSE 100 index with a rise of 4.26% followed by increase in Randgold Resources Ltd. of 3.68%, in Wm Morrison Supermarkets Plc of 3.55%, in Centrica Plc of 3.53%, in Thomas Cook Group Plc of 3.20%.