European Markets Up; Henkel, Alstom Gain

123jump.com Staff
29 Oct, 2009
New York City

European markets closed higher. Henkel AG reported better than expected earnings. Deutsche Bank earnings nearly tripled in the third quarter. Alstom SA anticipates more orders for power plants in the second half. AXA and BASF report weak earnings.

[R]7:00PM Frankfurt, Paris; 1:00 PM New York – European markets closed higher. Henkel AG reported better than expected earnings. Deutsche Bank earnings nearly tripled in the third quarter. Alstom SA anticipates more orders for power plants in the second half. AXA and BASF report weak earnings.[/R]

European markets rebounded in the late afternoon trading after the release of third quarter U.S. GDP. The better than expected economic expansion at 3.5% lifted industrial and cyclical stocks.

Earnings at Henkel, Deutsche Bank, France Telecom and capital offering plan at Societe Generale also contributed to the positive sentiment. Alstom SA also signaled higher order in the second half and reiterated its earlier target on operating margins.

In London FTSE 100 Index closed higher 51.28 or 1.01% to 5,131.70, in Paris CAC 40 Index increased 46.14 or 1.26% to close at 3,709.92, in Frankfurt DAX index higher 77.29 or 1.41% to close at 5,573.56. In Zurich trading SMI increased 60.21 or 0.96% to close at 6,340.15.

Federal Labor Agency in Germany reported seasonally adjusted number of unemployed people decreased 26,000 to 3.43 million in October. The decline was not expected by economists.

Gainers & Losers

Alstom SA increased 1.1% to €47.40 after the maker of high-speed trains and power stations said that orders in the second half are expected to recover and reiterated its outlook for the fiscal year operating margin of 9%.

AXA SA decreased 1.3% to €24.63 after the insurer said nine month revenue fell 2.6% to €68.09 billion from €69.46 billion a year ago.

Aixtron AG rose 2.7% to €18.65 after the maker of specialized equipment used to produce LED screens after the company reported third quarter results and indicated a plan to raise capital.

BASF SE dropped 1.1% to €36.59 after the chemical maker said third quarter net profit fell 69% on lower sales at its chemicals and plastics division and restructuring charges related to the accelerated integration of Ciba.

Bijou Brigitte Modische Accessoires AG closed unchanged at €114.88 after the fashion jewelry and accessories sector said that it will continue to expand its business in the remaining quarter of fiscal 2009. For the year, the company anticipates to open 64 new stores.

Cegedim SA fell 4.3% to €67.94 after the supplies sales tracking software said it plans to raise €180 million in equity capital in a rights issue with the support of the Labrune Family and Fonds Strategique d''Investissement.

Continental AG rose 4.0% to €36.39 after the auto- parts maker said third quarter net loss €1.04 billion.

CropEnergies AG dropped 1.4% to €3.45 after the operator of bio-ethanol plant said reduces the production planning for the current third quarter due to an unscheduled need for repairs in its new plant in Belgium.

Dassault Systemes SA decreased 1.2% to €39.49 after the maker of three-dimensional design software said third quarter net income fell 13% to €38.5 million or €0.32 a share compared to €44.2 million or €0.37 a year ago.

Deutsche Bank AG rose 1.5% to €49.67 after the lender reported third quarter net income of €1.38 billion compared to €435 million.

Deutsche Lufthansa AG rose 1.7% to €10.56 after the airline warned that its fiscal 2009 earnings will be hit by falling passenger numbers and the rising oil price.

ESR SA the engineering company fell 1.7% to €1.71.

Etablissements Maurel et Prom SA the oil explorer rose 0.6% to €13.85.

France Telecom S.A dropped 0.2% to €17.70 after the third quarter revenue slipped 6.4% to €12.69 billion and profit decreased 8% to €4.56 billion.

GEA Group AG the manufacturer fell 0.4% to €13.06.

Lectra SA increased 5.6% to €2.42 after the maker of computer systems said the Secretariat of the International Court of Arbitration notified the award today in the arbitration initiated in June 2005 by the company. The award of €21.9 million by the arbitral tribunal is composed of award on the merits €15.1 million (plus interest since June 2005 and post-award interest) and award as costs €6.8 million (plus post award interest).

MAN SE rose 3.4% to €56.50 after the truck maker reported a third quarter net profit of €4 million, reflecting the steep downturn in the truck market. The company anticipates little improvement in the fourth quarter.

Nexity SA added 2.0% to €26.08 after the property developer said nine month revenue €1,962 million.

Parsys SA surged 12.2% to €3.21.

Suedzucker AG the sugar refiner fell 0.7% to €14.36.

Volkswagen AG rose 0.04% to €110.20 after the automaker said that for fiscal 2009 it expects that the sales revenue will not reach the level of previous fiscal year 2008.

Volkswagen AG reported third quarter sales fell 10% to €26 billion from €28.9 billion a year ago. Net profit in the quarter fell 86% to €172 million or €0.43 per diluted share compared to net profit of €1.21 billion or €3.02 per share a year ago.

Zueblin Immobiliere France S.A the real-estate investment company rose 1.0% to €4.80.

DAX Index Movers

RWE AG led the decliners in the DAX index of 0.52% followed by losses in E.ON AG of 0.49%, in Merck KGaA AG of 0.17%, in Volkswagen AG of 0.03%.

CommerzbankAG led gainers in the DAX index with a rise of 7.19% followed by increase in MAN SE of 6.38%, in Deutsche Bank AG of 6.11%, in Infineon Technologies AG of 5.92%, in Diamler AG of 4.81%.

CAC-40 Index Movers

Sanofi-Aventis led the decliners in the CAC-40 index of 2.44% followed by losses in France Telecom SA of 1.63% in Electricité de France of 0.79%, in Suez Environnement SA of 0.52%, GDF Suez SA of 0.33%.

Societe Generale SA gainers in the CAC-40 index with a rise of 6.21% followed by gainers in Alcatel Lucent of 5.40%, Accor SA of 4.98%, in Compagnie de Saint-Gobain SAof 4.75%, Credit Agricole SAof 4.32%.

FTSE 100 Index Movers

Of the stocks in the FTSE 100 index, 79 increased, 22 declined and 1 were unchanged.

Royal Dutch Shell Plc decliners in the FTSE 100 index with a loss of 3.18% followed by losses in Royal Dutch Shell Plc of 3.17%, in BG Group Plc of 1.92%, in AstraZeneca Plc of 1.36%, in BAE Systems Plc of 0.91%.

The Royal Bank of Scotland Group Plc led gainers in the FTSE 100 index with a rise of 8.12% followed by increase in Lloyds Banking Group Plc of 7.56%, in Xstrata Plc of 6.75%, in Kazakhmys Plc of 6.02%, in Fresnillo Plc of 5.98%.