European Markets Weaken; MAN Drops 4%

Mayank Mehta
30 Nov, 2009
New York City

Deutsche Boerse refused to increase the bid for the Warsaw Stock Exchange. MAN SE dropped 4% on the worries that illegal payment investigation may cost as much as

[R]7:00 PM Frankfurt, Paris; 1:00 PM New York – Deutsche Boerse refused to increase the bid for the Warsaw Stock Exchange. MAN SE dropped 4% on the worries that illegal payment investigation may cost as much as €300 million.[/R]

European traded higher in the morning but closed lower on the weakness on banking stocks.

In London FTSE 100 Index closed lower 55.05 or 1.05% to 5,190.68, in Paris CAC 40 Index decreased 41.30 or 1.11% to close at 3,680.15, in Frankfurt DAX index lower 59.66 or 1.05% to close at 5,625.95. In Zurich trading SMI decreased 75.71 or 1.19% to close at 6,260.95.

Dubai World has asked a freeze on the payment to $60 billion debt for six months and Dubai government sent its first signal that it is not interested in bailing out the construction holding company.

Banks around the world have been on the decline and European banks fell. Royal Bank of Scotland and Standard Chartered Bank led the decliners in trading.

Commerzbank decreased 0.3% to $6.22 and Deutsche Bank increased 0.2% to €48.06 and Societe Generale SA increased 0.8% to €46.89.

Royal Bank of Scotland decreased 4.5% to 33.18 pence and Lloyds Banking Group Plc declined 5.9% to 55.15 pence.

Gainers & Losers

Bourbon SA the oil tankers fleet operator decreased 4.3% to €25.45.

Daimler AG slipped 3.5% to €33.38 as Dubai loan worries dragged luxury goods makers including select automakers. Autoworkers at its largest plant protested the management action to transfer the C-Class model to the manufacturing plant in Alabama.

DEAG Deutsche Entertainment AG closed unchanged at €1.00 after the German promoter said nine-month net profit €1.1 million compared to net loss of €3.6 million a year ago.

Demag Cranes AG fell 0.2% to €23.15 after the maker of harbor cranes was upgraded to “neutral” from “sell” at UBS AG.

Deutsche Bank AG rose 0.4% to €48.15.

Deutsche Boerse AG fell 1.6% to €55.66 an international financial marketplace operator said on Saturday that it would not increase its bid for a controlling stake in the Warsaw Boerse after the Polish government requested an improved offer for the exchange.

Douglas Holding AG the makeup and perfume retailer fell 0.6% to €34.10.

HCI Capital AG the manager of closed-end funds added 1.4% to €1.45.

Hochtief AG the construction company rose 0.2% to €52.70.

Infineon Technologies AG climbed 0.9% to €3.18 and the company and Nokia are collaborating to develop advanced RF transceiver solutions.

MAN SE fell 2.5% to €55.26 after the truckmaker said Karlheinz Hornung, the company''s chief financial officer will resign his seat on the executive board of the company as of December 11 for personal reasons.

Renault SA fell 0.4% to €32.03 after the carmaker was upgraded to “buy” from “neutral” at Goldman Sachs Group Inc.

RWE AG fell 1.0% to €61.42 after the utility and its U.S. subsidiary American Water Works Company, Inc. is in the process of selling stocks in an offering.

S.T. Dupont SA the maker of luxury lighters and pens plunged 9.5% to €0.19.

Suedzucker AG dropped 0.4% to €14.53 after the sugar refiner is aiming for a return on capital of 10% to 15% over the medium term according to the management board spokesman Wolfgang Heer quoted in the Monday edition of the Boersen-Zeitung.

TA Triumph-Adler AG increased 2.6% to €1.95 after the copy-machine distributor plan to shrink its board size as after Kyocera Mita increased its voting rights in the company above 95% threshold.

Volkswagen AG slipped 2.4% to €84.07.

Wendel SA dropped 0.08% to €39.07 after the publicly listed private-equity firm was upgraded to “neutral” from “sell” at UBS AG.

DAX Index Movers

Merck KGaA led the decliners in the DAX index of 4.35%, followed by losses in MAN SE of 3.70%, in Deutsche Boerse AG of 2.52%, in BMW AG of 2.42%, in Metro AG of 1.85%,

Deutsche Bank AG led gainers in the DAX index with a rise of 0.80% followed by increase in Adidas AG of 0.47%, in Deutsche Lufthansa AG of 0.38%, in Commerzbank AG of 0.32%, Deutsche Telekom AG of 0.20%.

CAC-40 Index Movers

Alcatel Lucent led the decliners in the CAC-40 index of 3.49%, followed by losses in Michelin SCA of 2.92%, in Alstom SA of 2.65%, in GDF Suez SA of 2.57%, in Technip of 2.25%.

Societe Generale SA gainers in the CAC-40 index with a rise of 0.84% followed by gainers in Dexia SA of 0.50%, in Renault SA of 0.11%.