European Markets Rebound; Hochtief Surges

Mayank Mehta
25 Mar, 2010
New York City

European markets closed higher after Germany and France workout an agreement to support Greece with the help from the IMF. The euro advanced. Hermes International fourth quarter sales surged 11% but annual earnings edged lower. Hochtief AG soared on a 25% rise in net income.

[R]7:00 PM Frankfurt, Paris; 1:00 PM New York – European markets closed higher after Germany and France workout an agreement to support Greece with the help from the IMF. The euro advanced. Hermes International fourth quarter sales surged 11% but annual earnings edged lower. Hochtief AG soared on a 25% rise in net income.[/R]

European leaders appear to reach an agreement to offer financial assistance to Greece with the help of the IMF. Luxembourg Prime Minister Jean-Claude Juncker told reporters in Brussels that bilateral loans from EU member nations and the IMF will provide a financial guarantee to Greece.

He added that Greece many need this assistance because the nation has a “credible” deficit reduction plan and financial markets “will eventually see that.”

Other European leaders appear to support bilateral aid and the IMF involvement too. Austrian Finance Minister Josef Proell endorsed the plan and Dutch Prime Minister also expressed his approval of the plan.

In London FTSE 100 Index closed higher 49.77 or 0.88% to 5,727.65, in Paris CAC 40 Index increased 50.67 or 1.28% to close at 4,000.48, in Frankfurt DAX index higher 93.95 or 1.56% to close at 6,132.95. In Zurich trading SMI increased 14.22 or 0.21% to close at 6,894.17.

Credit Suisse Group AG noted in the annual report released today that it set aside Sfr 6.87 billion in bonuses for 2009. Chief executive Brady Dougan was awarded Sfr 19.2 million in total compensation that included fixed salary of Sfr 1.2 million. In 2009, Dougan was paid Sfr 2.86 million.

Gainers & Losers

Aubay SA surged 12.7% to €4.77 an integration and technology consultancy group said 2009 revenues fell 9% to €147.2 million from €161.4 million a year ago. Net profit for the year rose 45% to €3.98 million or €0.31 per diluted share compared to net profit of €7.28 million or €0.53 per share a year ago.

Centrotherm Photovoltaics AG dropped 4.3% to €33.75 after the technology and equipment providers for the manufacturing of solar silicon said 2009 revenues rose 36% to €509.1 million from €374.7 million a year ago. Net profit for the year fell 17.6% to €28.5 million or €1.35 per diluted share compared to net profit of €34.6 million or €2.06 per share a year ago.

Hermes International SCA dropped 1.6% to €103.40 after the maker of luxury handbags and silk ties said 2009 sales rose 8.5% to €1.91 billion from €1.76 billion a year ago. Net profit for the year fell 0.5% to €288.8 million compared to net profit of €290.2 million a year ago.

Hochtief AG advanced 3.8% to €59.28 after the global construction group said 2009 sales fell 2.9% to €18.17 billion from €18.7 billion a year ago. Net profit for the year rose 24.5% to €195.2 million or €2.93 per diluted share compared to net profit of €156.7 million or €2.26 per share a year ago.

Legrand SA the maker of electrical switches and plugs declined 4.0% to €23.60.

Mediolanum SpA added 2.8% to €4.40 after the financial-services company said 2009 net premiums written rose 252% to €9.64 billion from €2.74 billion a year ago. Net profit for the year rose 817% to €217.3 million or €0.30 per diluted share compared to net profit of €23.7 million or €0.03 per share a year ago.

Securidev SA the maker of conventional and electronic locks dropped 6.1% to €19.13.

DAX Index Movers

Volkswagen AG led the decliners in the DAX index of 3.04%, followed by Henkel AG of 0.14%.

Deutsche Bank AG led gainers in the DAX index with a rise of 4.01%, followed by increase in ThyssenKrupp AG of 2.72%, in Siemens AG of 2.69%, in Deutsche Lufthansa AG of 2.62%, and in Allianz SE of 2.45%.

CAC-40 Index Movers

Suez Environnement SA led the decliners in the CAC-40 index of 3.49%, followed by Cap Gemini SA of 0.10%.

Renault SA gainers in the CAC-40 index with a rise of 5.06%.followed by increase in PSA Peugeot Citroen S.A of 4.08%, in ArcelorMittal of 3.37%, in AXA of 3.10% and in Credit Agricole SA of 3.08%.