Commerzbank Surges; BMW Recommended

Mayank Mehta
09 Sep, 2009
New York City

European markets gained on the rise in energy and commodities linked stocks. Banks in Germany gained after Commerzbank said it plans to return 5 billion to the bank rescue fund. BMW gained on an analyst recommendation. Renault increased on positive comments from its chief.

[R]7:00PM Frankfurt, Paris; 1:00 PM New York – European markets gained on the rise in energy and commodities linked stocks. Banks in Germany gained after Commerzbank said it plans to return 5 billion to the bank rescue fund. BMW gained on an analyst recommendation. Renault increased on positive comments from its chief.[/R]

In London FTSE 100 Index closed higher 56.96 or 1.15% to 5,004.30, in Paris CAC 40 Index increased 46.73 or 1.28% to close at 3,707.69, in Frankfurt DAX index higher 92.53 or 1.69% to close at 5,574.26. In Zurich trading SMI increased 7.32 or 0.12% to close at 6,202.04.

Gainers & Losers

Adidas AG the sporting-goods maker advanced 3.3% to €33.70 and BASF SE the chemical company decreased 1.0% to €36.10.

BMW increased 6.1% to €33.92 after Daimler’s Mercedes consider a plan to build transmission for the U.S. market at a jointly owned manufacturing facility.

Commerzbank AG increased 12% to €8 after the company chief said that the bank plans to return €5 billion of debt guarantee it received from the bank rescue fund.

Separately, the bank sold the entire remaining stake of approximately 5% or €9.2 million shares it held in GEA Group AG. The shares worth €115.9 million were placed with institutional investors.

Inter Parfums SA added 2.5% to €16.30 after maker of fragrances and cosmetics said first-half revenues fell 5% to €121.3 million from €128.3 million a year ago. Net profit in the first-half rose 3% to €11.5 million compared to net profit of €11.2 million a year ago.

Lafarge S.A decreased 2.7% to €58.20 after the cement maker was downgraded to “neutral” from “buy” at UBS AG.

MediGene AG added 5.6% to €5.04 after the biotechnology company said that it has received German marketing authorization for Veregen® for the treatment of genital warts from the Federal Institute for Drugs and Medical Devices.

Renault SA increased 5.0% to €32.87 after the chief executive of carmakers and Nissan Motor Co Ltd said “the financial crisis is clearly behind us,” but added that the recovery would be gradual and take several years.

Salzgitter AG the steelmaker increased 0.2% to €66.65.

Tessi SA the data-processing company rose 1.1% to €50.08.

ThyssenKrupp AG declined 1.0% to €23.15 after the steelmaker is heading for a bigger-than-expected pretax loss of more than €2 billion weighed down by special items a newspaper reported.

Veolia Environnement decreased 0.06% to €24.35.

Vivalis SA rose 2.9% to €11.08 after the vaccine maker appointed Philippe Rousseau as Chief Financial Officer. Philippe Rousseau served since 2002 as Chief Financial Officer of ExonHit Therapeutics S.A and was a member of the management board from 2004 to 2009.

Vivendi SA edged lower 1.6% to €19.69, the French telecom and entertainment conglomerate offered $2.9 billion to acquire the smallest mobile telecom operator in Brazil. Vivendi signed an agreement with Swarth Group and Global Village Telecom (Holland) BV, the founding and controlling shareholders of GVT (Holding) SA.

Xiring SA increased 4.1% to €9.27 after the software developer said first-half of the year an operating income of €1.96 million and 16.6% of the turnover up 18.8%. Net income was of €1.98 million 16.7% of the turnover, up 27.7%.

DAX Index Movers

METRO AG led the decliners in the DAX index of 1.10% followed by losses in K+S AG of 0.80%, in Hannover Rue AG of 0.33%, in Volkswagen AG of 0.15%, in Fresenius SE of 0.14%.

Commerzbank AG led gainers in the DAX index with a rise of 11.01% followed by increase in BMW AG of 6.87%, in MAN SE of 5.66%, in adidas AG of 4.45%, in Bayer AG of 3.87%.
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CAC-40 Index Movers

Vivendi SA led the decliners in the CAC-40 index of 2.40% followed by losses in STMicroelectronics NV of 1.60%, in Carrefour SA of 1.28%, in Electricite de Strasbourg SA of 1.27%, Accor SA of 1.01%.

Renault SA gainers in the CAC-40 index with a rise of 6.93% followed by gainers in PSA Peugeot Citroen SA of 5.86%, Compagnie de Saint-Gobain SA of 4.27%, in Schneider Electric SA of 2.53%, in LVMH Moet Hennessy Louis Vuitton SA of 2.91%.