European Markets Flat; Portugal Assset Sale

123jump.com Staff
08 Mar, 2010
New York City

European market indexes closed nearly unchanged after the early gains evaporated. Resource sector stocks trade higher. French President voiced a strong support to Greece to send a signal to investors and support the euro. Portugal prepares to sell 6 billion euros of assets to lower budget deficit.

[R]7:00 PM Frankfurt, Paris; 1:00 PM New York – European market indexes closed nearly unchanged after the early gains evaporated. Resource sector stocks trade higher. French President voiced a strong support to Greece to send a signal to investors and support the euro. Air France-KLM traffic declined 2.2% in February.[/R]

Markets in Europe traded up after Dubai prepares to offer debt renegotiation plan this week and European leaders offer a strong support to Greece.

French President Nicholas Sarkozy after a meeting with Greek Prime Minister George Papandreou said that Greece does not need emergency funds but Europe is prepared to help Greece if needed.

Papandreou is scheduled to meet U.S. President Barack Obama in Washington tomorrow.

In London FTSE 100 Index closed higher 6.96 or 0.12% to 5,606.72, in Paris CAC 40 Index decreased 6.88 or 0.18% to close at 3,903.54, in Frankfurt DAX index lower 1.45 or 0.02% to close at 5,875.91. In Zurich trading SMI increased 3.42 or 0.05% to close at 6,851.20.

Portugal also announced stake sales and delay spending as it seeks to convince investors that the government is serious about trimming budget deficit.

Finance Minister Fernando Teixeira dos Santos announced plans to sell 6 billion euros of assets and slow the increase in civil servant wages at a pace slower than inflation through 2013 and delay spending on high speed rails.

Gainers & Losers

Air France-KLM rose 0.1% to €10.54 after the bad weather and strikes triggered a 2.2% fall in passenger traffic in February.

Areva SA rose 0.03% to €352.40 after the nuclear reactor builder formed a venture with China Guangdong Nuclear Power Holding Co. to seek out overseas nuclear power plant construction opportunities, the head of the Chinese company said on Friday.

BioMerieux SA gained 4.3% to €83.72 after the maker of tests for HIV and hepatitis said fiscal 2009 revenues rose 9% to €1.2 billion from €1.1 billion a year ago. Net profit for the year rose 14% to €147.8 million or €3.75 per diluted share compared to net profit of €129.9 million or €3.29 per share a year ago.

Ciments Francais SA added 3.0% to €71.40 after the provider of construction materials said fiscal 2009 revenues fell 12.5% to €4.2 billion from €4.8 billion a year ago. Net profit for the year fell 12% to €234.3 million or €6.39 per diluted share compared to net profit of €266.0 million or €7.16 per share a year ago.

Deutsche Bank AG rose 0.04% to €50.97.

EADS NV fell 0.6% to €15.85.

Italcementi SpA rose 2.2% to €8.77 after the producer and distributor of cement said fiscal 2009 revenues fell 14% to €5.0 billion from €5.8 billion a year ago. Net profit for the year fell 50% to €71.3 million or €0.24 per diluted share compared to net profit of €142.5 million or €0.50 per share a year ago.

Metro AG rose 1.4% to €40.67 after the retailer was upgraded to “equal-weight” from “underweight” at Morgan Stanley.

Porsche Automobil Holding SE fell 1.1% to €39.90.

Salzgitter AG fell 1.2% to €67.21 after the steelmaker was downgraded to “neutral” from “overweight” at JPMorgan Cazenove.

Veolia Environnement dropped 1.3% to €23.61 after the water company was downgraded to “neutral” from “buy” at Bank of America-Merrill Lynch Global Research.

Virbac SA rose 0.6% to €73.50 after the maker of animal vaccines and health-care products for pets bought a 30% stake in Uruguay’s Santa Elena laboratory.

Vivendi SA fell 0.2% to €19.31.

DAX Index Movers

Deutsche Post AG led the decliners in the DAX index of 1.57%, followed by K+S AG of 1.43%, in Salzgitter AG of 1.18%, in BMW AG of 1.13%, and in Fresenius SE of 0.96%.

Volkswagen AG led gainers in the DAX index with a rise of 2.23%, followed by increase in Metro AG of 1.81%, in Beiersdorf AG of 1.59%, in Muenchener Rue AG of 1.07%, and in RWE AG of 1.00%.

CAC-40 Index Movers

Vallourec SA led the decliners in the CAC-40 index of 1.61%, followed by Bouygues SA of 1.48%, in Societe Generale SA of 1.43%, in Air Liquide SA of 1.38% and in LVMH SA of 1.23%.

Dexia SA gainers in the CAC-40 index with a rise of 0.82%.followed by increase in BNP Paribas SA of 0.76%, in Credit Agricole SA of 0.64%, in GDF Suez SA of 0.49% and in ArcelorMittal of 0.49%.