Old-economy stocks send Paris back up

The market in Paris edged back up towards its recent record high, with old-economy shares making most of the progress as a handful…

The market in Paris edged back up towards its recent record high, with old-economy shares making most of the progress as a handful of companies reported good results.

Carmaker Peugeot rose 4.7 per cent to €224 after it reported strong first-half results. Three investment banks raised their earnings-per-share targets for the stock: Goldman Sachs, Morgan Stanley Dean Witter and SG Securities.

Oil company Total Fina Elf added another 1.1 per cent to close at a record high of €183, lifted by its results this week and the ever-rising oil price. SG Securities raised its share-price target to €220 from €200.

European aerospace group EADS hit its highest level since it began trading two months ago, buoyed by a jump in rival Boeing of the US. EADS shares closed at €19.05, a rise of 4.4 per cent.

READ MORE

Frankfurt gained ground with further weakness for technology stocks and chemicals offset by some strong individual features.

Deutsche Telekom came off 85 cents at €45.90 and Epcos 80 cents at €110.30 as an early rally for the Nasdaq failed to fully restore the damage done in recent sessions to tech-related sentiment.

Chemicals continued to suffer from negative broker comment and worries about softening sales and squeezed trading margins. BASF shed €1.07 at €42.58 and Bayer €1.05 at €45.75.

Schering, where the sales base is more pharmaceuticals than basic chemicals, rose as investors continued to warm to Wednesday's upbeat trading statement. The shares added €4.80 or 8.1 per cent at €64.

Insurers, lifted on Wednesday by positive comment from Goldman Sachs, stayed in demand. Allianz added €6.50 at €395.50 and Munich Re €4.20 at €330.

Oil price and, therefore, fuel cost concerns continued to gnaw at Lufthansa, sending the shares down €1.15 or 4.8 per cent at €22.95.

Amsterdam shed 0.11 at 694.90 on the AEX index after a bad day for the chemicals heavyweights and renewed profit-taking at cable TV group UPC.

DSM lost 63 cents at €34.05 and Akzo Nobel 25 cents at €49.25 as sentiment in the European chemicals sector soured on trading concerns. UPC met with a renewed round of profit-taking. The stock plunged to €26.70 before closing off €1.50 at €28 in 8.2 million shares traded. News of a $1.1 billion bid for a Spanish supermarket chain sent Ahold down €1.45 or 4.4 per cent to €31.66.