ECB Left Rates at 1%; Vinci Rises, Maersk Falls

Mayank Mehta
04 Mar, 2010
New York City

European markets closed lower after a three day rally and the ECB left its key rate unchanged at 1%. Greece launched its

[R]7:00 PM Frankfurt, Paris; 1:00 PM New York – European markets closed lower after a three day rally and the ECB left its key rate unchanged at 1%. Greece launched its €5 billion. Maersk, the largest container shipping group reported 2009 net loss of $1.30 billion. Vinci SA profit beats estimates and sales growth forecast this year. ProSiebenSat.1 Media AG swings to fourth quarter profit.[/R]

The European Central Bank left its key rate unchanged at 1% and the Bank of England left its reference rate at 0.5%. Central banks are in a holding pattern as companies cut investments and unemployment hovers near record high.

Greek workers union occupy finance ministry in central Athens as demonstrators press government to ease budget cuts and lower taxes.

The Friday meeting between Greek prime minister and German Chancellor is not likely to finalize aid package. Chancellor Merkel in a local television denied that meeting is about bailout package responding to the voter resistance to any assistance to Greece.

In London FTSE 100 Index closed lower 6.05 or 0.11% to 5,527.16, in Paris CAC 40 Index decreased 14.11 or 0.37% to close at 3,828.41, in Frankfurt DAX index lower 22.56 or 0.39% to close at 5,795.32.

In Zurich trading SMI decreased 8.29 or 0.12% to close at 6,804.87.

Gainers & Losers

Alstria Office REIT-AG rose 0.2% to €8.02 after the real-estate investment trust said revenues and fund flows are in line with company guidance.

Beiersdorf AG fell 0.4% to €45.04 after the consumer products maker announced net income fell 33% as the economic downturn affected demand for household goods and adhesives used in industry.

BioAlliance Pharma SA added 2.4% to €5.03 after the biopharmaceutical company said fiscal 2009 revenues fell 8.5% to €7.5 million from €8.2 million a year ago. Net loss for the year was €15.4 million compared to net loss of €21.4 million a year ago.

Deutsche Bank AG rose 0.3% to €49.18 after the bank to double assets managed for rich Indian expats.

Fielmann AG fell 0.7% to €61.20 after the chain of optical stores was downgraded to “neutral” from “buy” at Bank of America Merrill Lynch Global Research.

GDF Suez SA dropped 2.4% to €26.75 after the natural gas and electricity supplier said fiscal 2009 revenues fell 3.8% to €79.9 billion from €83.1 billion a year ago. Net profit for the year fell 31% to €4.5 billion compared to net profit of €6.5 billion a year ago.

Koninklijke Ahold N.V gained 4.9% to €9.65 after the supermarket operator said fiscal 2009 revenues rose 9% to €27.9 billion from €25.6 billion a year ago. Net profit for the year fell 17% to €894 million or €0.74 per diluted share compared to net profit of €1.07 billion or €0.90 per share a year ago.

Lottomatica Group SpA advanced 1.4% to €13.96 after the gaming company said fiscal 2009 revenues rose 5% to €2.2 billion from €2.1 billion a year ago. Net profit for the year fell 27% to €68.1 million or €0.45 per diluted share compared to net profit of €93.7 million or €0.62 per share a year ago.

ProSiebenSat.1 Media AG fell 1.5% to €11.18 after the broadcaster said fourth quarter revenues rose 0.4% to €880.5 million from €876.8 million a year ago. Net profit for the quarter was €113.4 million or €0.52 per diluted share compared to net loss of €170.0 million or €0.79 per share a year ago.

Prysmian SpA rose 2.3% to €13.30 after the provider of cables and systems for energy and telecommunications said fiscal 2009 revenues fell 27.5% to €3.7 billion from €5.1 billion a year ago. Net profit for the year rose 4.6% to €248 million or €1.39 per diluted share compared to net profit of €237 million or €1.31 per share a year ago.

Vinci SA rose 2.7% to €41.27 after the builder said fiscal 2009 revenues fell 4.6% to €31.9 billion from €33.5 billion a year ago. Net profit for the year fell 0.6% to €1.59 billion or €3.30 per diluted share compared to net profit of €1.6 billion or €3.21 per share a year ago.

DAX Index Movers

Allianz SE led the decliners in the DAX index of 1.06%, followed by K+S AG of 0.99%, in E.ON AG of 0.97%, in Salzgitter AG of 0.92%, and in BASF SE of 0.90%.

Metro AG led gainers in the DAX index with a rise of 2.15%, followed by increase in Henkel AG of 2.10%, in Commerzbank AG of 1.90%, in Deutsche Bank AG of 1.75%, and in Fresenius SE of 0.80%.

CAC-40 Index Movers

GDF Suez SA led the decliners in the CAC-40 index of 2.68%.followed by Accor SA of 1.44%, in Technip of 0.96%, in Bouygues SA of 0.92%, and in L''Oreal SA.of 0.89%.

PSA Peugeot Citroen S.A. gainers in the CAC-40 index with a rise of 2.71%.followed by increase in Vinci SA of 2.63%, in Alcatel Lucent of 1.98%, in EADS NV of 1.03% and in Unibail-Rodamco SA of 0.76%.