European Markets Rise; Metro, Areva in Focus

Mayank Mehta
11 Sep, 2009
New York City

European markets closed higher as China reported strong economic data for August. Steelmakers gained. Weak crude oil prices dragged energy companies lower. Banks traded mixed in the region. Air France-KLM advanced after passenger load factors improved. Areva SA prices its euro denominated bonds.

[R]7:00PM Frankfurt, Paris; 1:00 PM New York – European markets closed higher as China reported strong economic data for August. Steelmakers gained. Weak crude oil prices dragged energy companies lower. Banks traded mixed in the region. Air France-KLM advanced after passenger load factors improved. Areva SA prices its euro denominated bond offering.[/R]

Stocks in Frankfurt gained after China released strong economic data for August. A rally in industrial and steelmakers also lifted stocks in Germany and France.

In London FTSE 100 Index closed higher 23.79 or 0.48% to 5,011.47, in Paris CAC 40 Index increased 29.02 or 0.78% to close at 3,734.89, in Frankfurt DAX index higher 29.25 or 0.52% to close at 5,624.02. In Zurich trading SMI increased 24.56 or 0.40% to close at 6,232.99.

The DAX index for the week increased 4.5% and the CAC-40 index added 3.8%.

Gainers & Losers

ArcelorMittal, the largest steelmaker increased 4.5% to €27.18 on a rally in steel sector after China reported higher industrial production and rising money supply. ThyssenKrupp AG the steelmaker increased 2.0% to €24.25.

Areva SA rose 0.5% to €418.00 after the nuclear power reactor maker set the price guidance on a new two-part euro-denominated bond according to media reports in London and Paris.

Air France-KLM advanced 8.1% to €11.67 after the company reported rising passenger loads for the second month in a row after the company cut the capacity.

AXA SA rose 3.5% to €17.20 after BofA Merrill Lynch upgraded to “buy” from “neutral.”

Club Mediterranee SA fell 0.3% to €12.85 after the resort company said that its third quarter comparable sales fell 14%. Total sales declined 12.5% to €315 million.

Dialog Semiconductor Plc increased after it successfully placed 10 million shares at €3.65 a share to raise gross proceeds of €43.8 million. The share offering represents 20% of the enlarged issued share capital.

Fiat SpA increased 4.6% to €4.93 after the manufacture and distribution of automobiles was upgraded to “outperform” from “underperform” at Credit Suisse.

Lafarge S.A the cement and building materials maker increased 1.6% to €60.52.

Metro AG fell 2.1% to €36.09 on the speculation that an investor Otto Beisheim may seek to sell shares after the end of his company investor agreement with two controlling shareholders Franz Haniel & Cie. GmbH and Schmidt-Ruthenbeck family.

Beisheim at the time of agreement two years ago controlled 18.5% and two controlling shareholders collectively controlled 50.1%. According to a statement issued, Beisheim is seeking more flexibility with his holding after the termination of the contract on October 1. Both Beisheim and Haniel expects the collaboration between them to continue.

Pernod Ricard SA dropped 0.3% to €51.53 after the distiller said it remains cautious in its outlook for consumer spending and the spirits industry in the U.S.

Television Francaise 1 SA decreased 4.8% to €12.23 after the television broadcaster was downgraded to “reduce” from “buy” at Natixis SA.

Total SA fell 0.3% to €41.60 after crude oil prices edged lower after rising for three days in a row in London.

Takkt Group increased 2.8% to €8.32 after Bank of America Merrill Lynch raised outlook on the company. The b2b mail order group with presence in 25 countries had reported in late July 24% decline in revenue in the first half of 2009.

DAX Index Movers

Commerzbank AG led the decliners in the DAX index of 2.40% followed by losses in Metro AG of 1.97%, in Siemens AG of 1.73%, in Muenchener Rue AG of 0.89%, in Deutsche Telekom AG of 0.78%.

Salzgitter AG led gainers in the DAX index with a rise of 4.59% followed by increase in Volkswagen AG of 4.14%, in Deutsche Post AG of 3.89%, in Thyssenkrupp AG of 2.90%, in Henkel AG of 2.82%.

CAC-40 Index Movers

Cap Gemini SA led the decliners in the CAC-40 index of 1.36% followed by losses in PPR SA of 1.08%, in Pernod Ricard SA of 0.81%, in Electricite de Strasbourg SA of 0.77%, France Telecom SA of 0.63%.

Air France - KLM gainers in the CAC-40 index with a rise of 6.48% followed by gainers in ArcelorMittal of 5.06%, Alcatel-Lucent of 4.91%, in Compagnie de Saint-Gobain SA of 3.91%, in AXA of 3.28%.

FTSE 100 Index Movers

Of the stocks in the FTSE 100 index, 62 increased, 39 declined and 1 were unchanged.

Hotel Retail Group Plc decliners in the FTSE 100 index with a loss of 4.72% followed by losses in Burberry Group Plc of 1.88%, in TUI Travel Plc of 1.80%, in BT Group Plc of 1.63%, in Standard Life Plc of 1.46%.

Man Group Plc led gainers in the FTSE 100 index with a rise of 8.89% followed by increase in Fresnillo Plc of 5.07%, in International Power Plc of 3.53%, in Autonomy Corporation Plc of 3.30%, in Lonmin Plc of 3.24%.