Eurostoxx 50:2,319.57 (+50.38) Frankfurt Dax:5,840.28 (+164.58) Paris Cac:3,161.47 (+64.06)
EUROPEAN STOCKS advanced yesterday, extending a two-week gain for the Stoxx Europe 600, as energy companies rallied after the leaders of Germany and France gave themselves three weeks to create a plan to recapitalise banks.
A gauge of energy companies was among the best performers in the Stoxx 600 after HSBC Holdings upgraded Premier Oil. BP contributed the most to the gauge’s advance, adding 2.5 per cent to 403.6 pence.
Energy stocks jumped 1.9 per cent, for the second-best performance among the 19 industry groups in the Stoxx 600.
Ferrovial advanced 4.8 per cent to €8.93. The company agreed to sell 5.9 per cent of BAA’s parent company, FGP Topco, to Alinda Capital Partners for £280 million, reducing its indirect holding in the owner of London’s Heathrow airport to 49.99 per cent.
Maurel rallied 4.9 per cent to €13.34. The company said it had found oil sandstones at a well at the Sabanero licence in Colombia and oil samples taken have confirmed the field extension to the northeast.
ABB, the world’s largest maker of power-transmission gear, added 2.9 per cent to 16.89 Swiss francs. Jefferies Group had raised its recommendation on the company’s shares to “buy” from “hold”.
Erste Group, eastern Europe’s second-biggest lender, fell 14 per cent to €17.71, its largest slump since May 2009. The bank said it would post a full-year loss of as much as €800 million after writedowns at its Hungarian and Romanian units. Raiffeisen Bank, eastern Europe’s third-biggest lender, plunged 8.5 per cent to €20.36.
Dexia climbed 1.8 per cent to 86 cents after earlier falling as much as 36 per cent when it resumed trading after agreeing to a break-up plan.
Konecranes Oyj sank 3.5 per cent to €14.77. The company cut its forecast for full-year operating profit, excluding restructuring costs, saying it would be flat compared with last year. The company had predicted an increase in operating profit this year.
CSM NV slumped 19 per cent to €11.36, the largest plunge since November 2008, after the company said its second-half earnings would fall short of its forecasts.
The world’s biggest maker of bakery ingredients also said it planned to reduce costs by €50 million. – (Bloomberg)
