ING Trading Halted; Daimler, Michelin Earnings

Mayank Mehta
27 Oct, 2009
New York City

European markets declined in the region with banks leading the losers. ING Groep was suspended from trading on the NYSE Euronext. Dassault Systems intends to acquire certain software related assets from IBM. Daimler Benz net plunged 80%. Michelin SCA quarterly sales fell 11%.

[R]7:00PM Frankfurt, Paris; 1:00 PM New York – European markets declined in the region with banks leading the losers. ING Groep was suspended from trading on the NYSE Euronext. Dassault Systems intends to acquire certain software related assets from IBM. Daimler Benz net plunged 80%. Michelin SCA quarterly sales fell 11%.[/R]

European stocks were nearly unchanged but banks declined in the region. Earnings drove trading in Akzo NV, BP Plc, Daimler Benz AG and Michelin SCA.

There is a growing consensus among analysts and investors that many leading banks in the region will need more capital to meet the regulatory requirements. Banks in UK, Germany, the Netherlands and France are likely to need the most capital. UK banks may need as much as 30 billion euros.

ING Groep NV was suspended from trading on NYSE Euronext on “huge concentration” of volume. The stock is expected to resume trading tomorrow.

In London FTSE 100 Index closed higher 25.47 or 0.49% to 5,217.21, in Paris CAC 40 Index increased 5.86 or 0.16% to close at 3,750.31, in Frankfurt DAX index higher 1.42 or 0.03% to close at 5,643.58. In Zurich trading SMI increased 71.56 or 1.14% to close at 6,374.91.

Euro declined against the dollar and the pound bur traded near its recent highs.

Gainers & Losers

April Group SA added 2.6% to €26.90.

Arkema SA, the specialty chemicals maker decreased 2.5% to €26.04.

Bayer AG added 1.1% to €48.37 after the drugmaker said third quarter net income dropped 10.1% to €249 million compared to €277 million a year ago.

Boizel Chanoine Champagne SA the champagne and winemaker dropped 0.9% to €42.60.

Compagnie Plastic Omnium SA fell 2.2% to €19.83 after the plastics products maker said third quarter revenues fell 11%.

Dassault Systemes SA increased 7.2% to €41.30 after the engineering software systems developer intends to acquire IBM sales and client support operations encompassing Product Lifecycle Management software application portfolio as well as customer contracts and related assets, for approximately $600 million in cash.

DAB Bank AG rose 2.7% to €4.16 after the online broker said first nine months pre-tax profits were €26.53 million.

Daimler Benz AG decreased 2.1% to €35.07 after it reported third quarter net income plunged 80% to €41 million.

Faiveley SA fell 0.7% to €58.80 after the railroad-equipment maker said first-half revenues increased to €414.6 million from €383.7 million a year ago.

ING Groep NV decreased in New York trading and in Europe and was suspended from trading near the end of the session in Amsterdam. NYSE Euronext issued a statement and said that there is an imbalance between buy and sell orders without elaborating further.

The stock closed down 6% to €8.98 euros in Amsterdam trading and traded as low as €8.25.

LeGuide.com SA dropped 1.1% to €17.90 after the Internet shopping portal said third quarter revenues increased 8.7% to €5.1 million.

Manitou BF SA the manufacturer of industrial vehicles fell 3.5% to €10.35.

Michelin SCA declined 0.3% to €53.19 after the tiremaker said third quarter revenues fell 11% to €3.75 billion.

Montaigne Fashion Group SA the company, the women’s fashion designer surged 23.0% to €0.32.

NextRadioTV SA the owner of radio stations RMC and BFM close unchanged at €14.75.

Orpea SA the operations of retirement homes, outpatient and rehabilitation clinics rose 0.8% to €31.42.

Pernod Ricard SA rose 2.3% to €57.11 after the producer and distributor of spirits and wines was upgraded to “buy” from “neutral” at Nomura Holdings Inc.

Renault SA fell 4.6% to €32.49 after the carmaker was downgraded to “underweight” from “overweight” at Morgan Stanley.

Schneider Electric SA added 1.6% to €72.77 after the maker of circuit breakers was upgraded to “outperform” from “underperform” at Bernstein Research.

SMA Solar Technology AG rose 3.4% to €67.08 after the maker of solar-power equipment said it would open a factory in Colorado, investing about €15 million ($22 million) into the company''s first production site outside Germany.

ThyssenKrupp AG fell 1.7% to €23.58 after the steelmaker plans to pay its shareholders a dividend for the fiscal year just ended despite anticipated annual losses, German newspaper Die Welt said on Monday.

DAX Index Movers

Infineon Technologies AG led the decliners in the DAX index of 7.65% followed by losses in Commerzbank AG of 6.31%, in Salzgitter AG of 3.11%, in ThyssenKrupp AG of 2.91%, in BMW AG of 2.66%.

Deutsche Boerse AG led gainers in the DAX index with a rise of 2.64% followed by increase in Fresenius Medical Care AG & Co. KGaA of 2.28%, in Muenchener Rue AG of 1.98%, in E.ON AG of 1.49%.

CAC-40 Index Movers

Renault SA led the decliners in the CAC-40 index of 5.55% followed by losses in Dexia SA of 5.37% in PSA Peugeot Citroen S.A of 4.42%, in Lagardere SCA of 4.07%, Societe Generale SA of 3.40%.

Pernod Ricard SA gainers in the CAC-40 index with a rise of 3.46% followed by gainers in Total S.A. of 2.08%, Danone SA of 2.06%, in Schneider Electric SA of 1.94%, in Essilor International of 1.94%.