European Markets Near 18-month High

Mayank Mehta
17 Mar, 2010
New York City

European markets closed higher as stocks in resource, banks and retail sectors lead. Greek benchmark index fell 1.1%, the lone decliner among the eighteen European country indexes. Bourbon SA soared after it estimated better market conditions in the oil exploration and production.

[R]7:00 PM Frankfurt, Paris; 1:00 PM New York – European markets closed higher as stocks in resource, banks and retail sectors lead. Greek benchmark index fell 1.1%, the lone decliner among the eighteen European country indexes. Bourbon SA soared after it estimated better market conditions in the oil exploration and production. UniCredit SpA resumes dividend.[/R]

European market indexes rallied for the third day this week as investors remain optimist for the global economic recovery. The pledge for low interest rates by the U.S. Fed and European leaders plan to bailout Greece has cooled market nerves.

Seasonally adjusted construction activities in January decreased 2.2% in euro area and 2.0% in the EU27 compared to a month ago. In December 2009, activities fell by 1.0% in the euro zone and in EU 27 area rose by 0.8%.

In London FTSE 100 Index closed higher 24.20 or 0.43% to 5,644.63, in Paris CAC 40 Index increased 18.94 or 0.48% to close at 3,957.89, in Frankfurt DAX index higher 53.29 or 0.89% to close at 6,024.28. In Zurich trading SMI increased 17.58 or 0.26% to close at 6,892.01.

Gainers & Losers

Altarea SCA closed unchanged at €104.00 after the property investment company said 2009 net rental income rose 20% to €140.8 million from €117.3 million a year ago. Net profit loss or the year was €108.5 million or €10.73 per diluted share compared to net loss of €397.1 million or €44.17 per share a year ago.

Bourbon SA gained 13% to €30.22 after the maritime transportation and offshore and subsea services provider said 2009 revenues rose 3% to €960.5 million from €931.3 million a year ago. Net profit for the year fell 31% to €155.4 million compared to net profit of €224.4 million a year ago.

Commerzbank AG rose 2.5% to €6.35.

Freenet AG fell 1.0% to €9.99 after the mobile-phone operator was downgraded to “reduce” from “buy” at Kepler Capital Markets.

Industria de Diseno Textil SA the textile industry said 2009 sales rose 7% to €11.08 billion from €10.4 billion a year ago. Net profit for the year rose 5% to €1.31 billion or 211 cents per diluted share compared to net profit of €1.25 billion or 202 cents per share a year ago.

Lanxess AG the chemical company said 2009 revenues fell 15% to €5.06 billion from €6.6 billion a year ago. Net profit for the year fell 78% to €40.0 million or €0.48 per diluted share compared to net profit of €183 million or €2.20 per share a year ago.

Metro AG fell 0.1% to €43.00 after the retailer said 2009 sales fell 3.7% to €65.5 billion from €68 billion a year ago. Net profit for the year fell 11.6% to €519 million or €1.17 per diluted share compared to net profit of €558 million or €1.23 per share a year ago.

Rational AG fell 0.9% to €129.75 after the maker of appliances to the catering industry was downgraded to “neutral” from “buy” at Goldman Sachs Group Inc.

Siemens AG rose 2.1% to €71.15 after the company plans to revamp its SIS unit will involve cutting more than 1,000 jobs according to a report in Handelsblatt.

Stallergenes SA added 1.5% to €58.00 after the biopharmaceutical company said 2009 revenues rose 13% to €192.8 million from €170.9 million a year ago. Net profit for the year rose 17% to €22.2 or €1.69 per diluted share million compared to net profit of €19.0 million or €1.43 per share a year ago.

UniCredit SpA advanced 4.2% to €2.12 after the bank said 2009 net interest income fell 9% to €17.6 billion from €19.4 billion a year ago. Net profit for the year fell 57.5% to €1.7 billion compared to net profit of €4.0 billion a year ago.

DAX Index Movers

Metro AG led the decliners in the DAX index of 1.67%, followed by Fresenius SE of 1.20%, in Adidas AG of 1.19%, in Merck KGaA of 1.04%, and in Bayer AG of 0.94%.

Siemens AG led gainers in the DAX index with a rise of 3.22%, followed by increase in MAN SE of 3.13%, in SAP AG of 2.79%, in Volkswagen AG of 2.10%, and in Commerzbank AG of 2.06%.

CAC-40 Index Movers

Alcatel Lucent led the decliners in the CAC-40 index of 1.86%, followed by Sanofi-Aventis of 1.54%, in EADS NV of 0.96%, in LVMH SA of 0.86% and in Pernod Ricard SA of 0.68%.

Lafarge S.A. gainers in the CAC-40 index with a rise of 3.03%.followed by increase in Dexia SA of 2.54%, in ArcelorMittal of 2.43%, in Compagnie de Saint-Gobain SA of 2.35% and in Accor SA of 2.19%.