European Indexes Gain 2.2%; Composite Index Up

Mayank Mehta
23 Nov, 2009
New York City

European benchmark indexes closed higher after commodities rallied and energy prices gained. The composite index of services and industries showed an expansion across 16-nations in the euro zone. Alstom SA was awarded

[R]7:00 PM Frankfurt, Paris; 1:00 PM New York – European benchmark indexes closed higher after commodities rallied and energy prices gained. The composite index of services and industries showed an expansion across 16-nations in the euro zone. Alstom SA was awarded €100 million contract in South Africa.[/R]

European markets closed higher after commodities and metals prices gained, U.S. home sales increased to a 20-month high and composite index across euro-zone increased in November.

In London FTSE 100 Index closed higher 104.09 or 1.98% to 5,355.50, in Paris CAC 40 Index increased 83.81 or 2.25% to close at 3,813.17, in Frankfurt DAX index higher 138.33 or 2.44% to close at 5,801.48. In Zurich trading SMI increased 1432.78 or 2.12% to close at 6,410.24.

The latest survey of purchasing managers in 16-nation euro zone showed an increase in index of industries and services to 53.7 in November from 53 in October. The reading above 50 shows an expansion.

Gainers & Losers

Alstom SA increased 2.1% to €49.01 after it won €100 million contract in South Africa.

Areva SA added 1.7% to €368.45 after chief executive of the company said that the French power and transport engineering company Alstom SA''s bid for nuclear group power transmission and distribution unit is competitive.

Bollore SA advanced 0.4% to €115.50.

BMW AG the luxury cars climbed 0.5% to €32.95 and Daimler AG the automaker added 1.9% to €35.67.

Commerzbank AG the bank gained 1.6% to €6.66 and Deutsche Post AG the mail carrier rose 1.9% to €12.85.

Deutsche Telekom AG gained 1.1% to €9.61 after the phone company said O2 Germany plans to end its national roaming agreement with T-Mobile Germany according to financial weekly Euro am Sonntag citing O2 Germany''s managing director Rene Schuster.

Douglas Holding AG rose 5.6% to €32.88 after the competitors of the makeup and perfumes retailer acquired stake in the company. Mueller Ltd & Co. KG acquired 3% stake in the company and according to a report published in Focus magazine it plans to increase its stake to 18%.

Douglas also said that its Thalia division increased by 24.7% to 60.2% stake in Buch.de Internetstores AG from Bertelsmann AG

EADS NV the parent of Airbus SA climbed 1.8% to €12.95.

France Telecom S.A rose 0.7% to €17.03 after Orange France Telecom plans to expand its business operations in Viet Nam.

Gemalto NV added 1.3% to €30.65 after the maker of smartcards agreed to acquire banking business of XIRING, an e-commerce security provider.

Groupe Eurotunnel SA the operator of the undersea rail link rose 0.1% to €6.80.

Infineon Technologies AG rose 1.2% to €3.17 after the maker of semiconductors said its future growth will be in Asia and the company is also looking for acquisition.

Michelin SCA climbed 1.7% to €52.72 and the tiremaker will build a new factory in Brazil at a cost of hundreds of millions of dollars, Chief Executive Michel Rollier told a newspaper.

Natixis SA the investment-banking and asset- management unit fell 0.8% to €3.78.

PPR SA the French retail group rose 1.9% to €82.71.

Renault SA added 4.0% to €33.28 after the carmaker was upgraded to “outperform” from “underperform” at Credit Suisse Group AG.

Societe Generale SA the bank advanced 2.2% to €48.51.

Solon SE the maker of solar panels increased 1.7% to €7.73.

STADA Arzneimittel AG rose 1.1% to €23.26 after the maker of generic medicines was downgraded to “neutral” from “buy” at UBS AG.

Volkswagen AG rose 0.9% to €94.85 after the carmaker said aims to more than triple its annual sales volume in southern China from about 150,000 units currently to more than half a million by 2018, Winfried Vahland, president and chief executive of Volkswagen Group China said Sunday.

Zodiac SA the maker of aircraft seats and automotive components rose 0.4% to €23.00.

DAX Index Movers

Linde AG led gainers in the DAX index with a rise of 4.17% followed by increase in BASF SE of 3.71%, in Siemens AG of 3.61%, in Deutsche Bank AG of 3.48%, Bayer AG of 3.45%.

CAC-40 Index Movers

Alcatel Lucent led the decliners in the CAC-40 index of 2.44%, followed by losses in Danone SA of 0.51%.

Dexia SA gainers in the CAC-40 index with a rise of 3.94% followed by gainers in Renault SA of 3.81%, in Bouygues SA of 3.54%, in Accor SA of 3.53%, in Societe Generale SA of 3.51%.