DAX Index Lead European Markets; Auto Sales Up

Mayank Mehta
16 Nov, 2009
New York City

European markets closed higher on the back of global markets news. The German market benchmark index led the gainers with a rise of 2%. European auto sales increased 11.2% in October as incentives lift local demand.

[R]7:00 PM Frankfurt, Paris; 1:00 PM New York – European markets closed higher on the back of global markets news. The German market benchmark index led the gainers with a rise of 2%. European auto sales increased 11.2% in October as incentives lift local demand.[/R]

European markets closed higher after the group of 21-nations APEC agreed to keep the economic stimulus in place. Commodities prices increased as the economies of Asia are expected to expand.

In London FTSE 100 Index closed higher 86.29 or 1.63% to 5,382.67, in Paris CAC 40 Index increased 57.15 or 1.50% to close at 3,863.16, in Frankfurt DAX index higher 117.99 or 2.07% to close at 5,804.82. In Zurich trading SMI increased 71.73 or 1.13% to close at 6,422.81.

European auto sales increased 11.2% in October to 1.26 million according to the European Automobile Manufacturers Association. The sales increased for the fifth month in a row as the governments offered incentives to replace older cars. Auto sales increased 16% from a year ago month.

For the ten-month period ending in October sales declined 5.5% from a year ago.

Sales at Volkswagen AG increased 6.3% from a year ago to 267,948, at Renault SA sales surged 34% to 136,564 and at PSA Peugeot-Citroen sales increased 16% to 168,569. Sales at BMW declined 9% to 60,313 and at Daimler AG fell 3.3% to 62,759.

Gainers & Losers

Amplifon SpA added 3.0% to €3.28 after the hearing aid supplier said third quarter revenues rose 2.2% to €145.6 million from €142.5 million a year ago. Net profit in the quarter rose 86.7% to €2.8 million compared to net profit of €1.5 million a year ago.

ArcelorMittal rose 2.9% to €25.68 after the steelmaker is seriously considering a feasibility study for a new steel plant in Brazil as it sees strong demand prospects in the country, a senior executive at the company said on Monday.

Bayer AG the pharmaceutical company rose 0.2% to €51.66.

Brembo SpA advanced 0.8% to €5.48% after the manufacturer of disc brakes said third quarter sales fell 19.8% to €210.1 million from €262.0 million a year ago. Net profit in the quarter fell 66.4% to €4.1 million or €0.06 a diluted share compared to net profit of €12.2 million or €0.19 per share a year ago.

Bouygues SA gained 1.9% to €35.83 after the infrastructure company said it has received a €950 million contract for a giant real estate complex in Qatar.

BMW AG climbed 1.9% to €34.12 and the maker of luxury cars plans to invest an additional R2.2 billion at its BMW Plant in Rosslyn near Pretoria, South Africa. The investment will enable maximum plant capacity to increase from 60,000 to 87,000 units.

Credito Emiliano SpA rose 1.3% to €5.36 after the bank said third quarter net interest income fell 19.8% to €112.9 million from €140.8 million a year ago. Net profit in the quarter rose 127% to €43.2 million compared to net profit of €19.0 million a year ago.

Davide Campari-Milano SpA fell 0.1% to €7.20 after the maker of spirits, wines and soft drinks said nine months revenues rose 7.2% to €696.5 million from €649.6 million a year ago. Pre-tax profit in the nine months rose 14.8% to €133.7 million compared to pre-tax profit of €116.5 million a year ago.

Deutsche Post AG rose 1.3% to €12.73 after the mail carrier’s will not lose its German tax break privileges at the beginning of 2010, a spokesman for the German Finance Ministry said on Saturday.

Digital Bros SpA dropped 0.1% to €2.43 after the video game developer and publisher said third quarter sales rose 15.3% to €30.3 million from €26.2 million a year ago. Net profit in the quarter was €75,000 or €0.01 per diluted share compared to net loss of €96,000 or €0.07 per share a year ago.

EADS NV added 1.1% to €13.29 after the aerospace, defense and related services said third quarter revenues fell 2% to €9.53 billion from €9.70 billion a year ago. Net loss in the quarter was €87 million or €0.11 per diluted share compared to net profit of €679 million or €0.84 per share a year ago.

EEMS Italia SpA rose 3.1% to €0.95 after the provider of assembly and test solutions for the semiconductor industry said third quarter sales fell 26.5% to €33.0 million from €44.9 million a year ago. Net loss in the quarter was €2.05 million or €0.05 per diluted share compared to net profit of €4.3 million or €0.10 per share a year ago.

ERG SpA rose 0.5% to €10.26 after the oil refiner said third quarter revenues fell 47% to €1.76 billion from €3.32 billion a year ago. Net loss in the quarter was €14 million compared to net profit of €40 million a year ago.

Esprinet SpA rose 0.4% to €7.28 after the distributor of IT and consumer electronics said third quarter sales fell 13.4% to €428 million from €494.2 million a year ago. Net profit in the quarter rose 135% to €5.2 million or €0.10 per diluted share compared to net profit of €2.21 million or €0.04 per share a year ago.

Fraport AG rose 2.5% to €34.17 after the operator of Frankfurt airport was upgraded to “buy” from “hold” at Citigroup Inc.

GfK SE the market research group increased 4.8% to €23.79.

Maire Tecnimont SpA added 1.1% to €2.45 an international industrial group said nine months revenues fell 2% to €1.67 billion from €1.71 billion a year ago. Net profit in the nine months fell 37% to €49.9 million or €0.16 per diluted share compared to net profit of €79.5 million or €0.25 per share a year ago.

PSA Peugeot Citroen S.A advanced 3.1% to €25.10 after the manufacturer of passenger cars and light commercial vehicles said production and sales in the current quarter is ahead of its previous estimate at the end of the first half. Fourth quarter output will be 30% higher than in the period a year ago and 17% higher than in third quarter.

Renault SA increased 3.0% to €33.60 after the carmaker said that Russia's deputy prime minister said his government could support Renault taking control of troubled car maker Avtovaz OAO.

Rexel SA climbed 2.1% to €10.02 after the distributor of electrical equipment was upgraded to “buy” from “reduce” at Kepler Capital Markets.

SAP AG rose 1.6% to €48.10 after the maker of business- management software plans to raise licensing fees for thousands of clients who use older versions of its software, German weekly Wirtschaftswoche reported on Saturday.

Technip rose 2.2% to €49.17 after the oilfield- services provider said Abu Dhabi Gas Industries has awarded a 1.5 billion dirham ($408.4 million) gas development contract to the company.

ThyssenKrupp AG rose 3.4% to €24.62 after the steelmaker said full-year sales fell 24% to €40.6 billion from €53.4 billion a year ago. Net loss in the full-year was €1.86 billion or €4.01 per diluted share compared to net profit of €2.20 billion or €4.59 per share a year ago.

Tiscali SpA rose 0.1% to €0.17 an Internet communications company said nine months revenues fell 9.5% to €221.6 million from €244.9 million a year ago. Net loss in the nine months was €418.4 million compared to net loss of €98.2 million a year ago.

Unipol Gruppo Finanziario SpA fell 0.1% to €0.98 an insurance company said nine months net earned premiums rose 31.5% to €7.14 billion from €5.43 billion a year ago. Net profit in the nine months fell 92.7% to €13 million compared to net profit of €179 million a year ago.

Vinci SA increased 1.5% to €39.16 after the builder in a consortium agreed to the construction of the first light rail line in Ho Chi Minh City, Vietnam.

Vivendi SA fell 1.9% to €19.44 after the music and mobile telecom operator said that it has signed an agreement with Swarth Investments, Swarth Investments Holdings and Global Village Telecom, the founding and controlling shareholders of Brazilian broadband operator GVT, to acquire 38,422,666 GVT shares corresponding to 29.9% of GVT's outstanding voting share capital, at BRL 56 per share.

Volkswagen AG rose 1.3% to €97.65.

DAX Index Movers

K + S AG led the decliners in the DAX index of 1.34%, followed by losses in Fresenius Medical Care AG & Co. KGaA of 0.06%.

Salzgitter AG led gainers in the DAX index with a rise of 4.49% followed by increase in Diamler AG of 4.40%, in ThyssenKrupp AG of 3.76%, in Infineon Technologies AG of 3.38%, BASF SE of 3.30%.

CAC-40 Index Movers

Vivendi SA led the decliners in the CAC-40 index of 2.57%.

EADS NV gainers in the CAC-40 index with a rise of 4.52% followed by gainers in PSA Peugeot Citroen S.A of 4.48%, in ArcelorMittal of 4.27%, in Michelin SCA of 3.56%, in Renault SA of 3.16%.