Banks, Resource Stocks Lead in Europe

Mayank Mehta
23 Dec, 2009
New York City

Banks and natural resource stocks climbed in Europe after investors turned optimistic. Maurel & Prom SA advanced 4.2% after it discovered oil in Gabon. Vivalis signs a new commercial license in veterinary vaccine field. Bank Sarasin & Cie. AG said it will exceed its lending target this year.

[R]7:00 PM Frankfurt, Paris; 1:00 PM New York – Banks and natural resource stocks climbed in Europe after investors turned optimistic. Maurel & Prom SA advanced 4.2% after it discovered oil in Gabon. Vivalis signs a new commercial license in veterinary vaccine field. Bank Sarasin & Cie. AG said it will exceed its yearly lending target.[/R]

Investors focused on the prospects of economic recovery as the economic data in the region and in the U.S. suggested stable environment. Stocks in natural resources and banking sector closed higher.

In Paris CAC 40 Index increased 12.37 or 0.32% to close at 3,910.75, in Frankfurt DAX index higher 11.75 or 0.20% to close at 5,957.44. In Zurich trading SMI decreased 2.92 or 0.04% to close at 6,579.98. In London FTSE 100 Index closed higher 43.72 or 0.82% to 5,372.38.

Gainers & Losers

ArcelorMittal increased 0.2% to 31.13 and the steelmaker is looking to increase its iron ore supply from the mines controlled by the company to as much as between 75% and 85% by 2014 according an interview of Bill Scotting, the head of strategy.

The heavily indebted steel maker is looking to reduce its debt as well as the economy rebounds and sales prospect improve in Europe.

Etablissements Maurel et Prom SA added 4% to €12.53 after the oil explorer said that tests in Gabon reached a depth of 1,765 meters to discover the formation of hydrocarbons in the lime rock.

Groupe Ares SA surged 11.1% to €0.30 after the software company said first-half sales fell 26% to €34.8 million from €47.0 million a year ago. Net profit for the first-half was €18.7 million compared to net loss of €29.3 million a year ago.

Infineon Technologies AG rose 1.5% to €3.86 after the chipmaker raised its quarterly sales target Tuesday owing to stronger demand from clients in the automotive and energy sectors. Company now expects sales in the first quarter of its fiscal year to be nearly 10% higher than in the previous quarter, when they amounted to €855 million or $1.2 billion.

NextRadioTV SA gained 4.2% to €13.55 after the owner of French radio stations RMC and BFM was upgraded to “add” from “reduce” at Natixis Securities.

National Bank of Greece SA increased 1.7% to €18.45 after the Central Bank of Greece said banks in the country have higher than European average capital adequacy.

STMicroelectronics N.V the semiconductor maker climbed 1.4% to €6.31.

Vivalis SA rose 3.4% to €9.41 after the biopharmaceutical company said that that one of its client in the veterinary field has exercised its option for a commercial license after evaluating the EB66 technology in the frame of a research license.

Voestalpine decreased 1.4% to €25.50 after the company will issue 216,266 stocks to convertible bond holders that are scheduled to be redeemed on Jan 29. The total number of shares issued is 0.1% of outstanding shares.

DAX Index Movers

Infineon Technologies AG led the decliners in the DAX index of 2.19%, followed by losses in K+S AG of 2.12%, in Volkswagen AG of 1.99%, in Salzgitter AG of 1.20%, and in MAN SE of 1.16%.

Fresenius SE led gainers in the DAX index with a rise of 3.03% followed by increase in Henkel AG of 1.10%, in ThyssenKrupp AG of 1.08%, in Deutsche Lufthansa AG of 0.72%, and in Beiersdorf AG of 0.68%.

CAC-40 Index Movers

Suez Environnement SA led the decliners in the CAC-40 index of 1.45%, followed by losses in LVMH Moet Hennessy Louis Vuitton SA of 1.14%, in Pernod Ricard SA of 0.79%, in Technip of 0.73%, and in GDF Suez SA of 0.69%.

STMicroelectronics N.V. gainers in the CAC-40 index with a rise of 1.80% followed by gainers in AXA of 1.65%, in PPR SA of 1.64%, in L''Oreal SA of 1.40%, and in Societe Generale SA of 1.19%.