Wednesday May 7, 06:04 PM
Milan shares close higher, led by BMPS, Seat PG UPDATE
(updating with full report)
MILAN (Thomson Financial) - Share prices closed higher, supported by sharp gains in some smaller caps, and led by Banca Monte dei Paschi (Milan: BMPS.MI - news) di Siena SpA on issues related to its rights issue and Seat Pagine Gialle SpA (Milan: PG.MI - news) on directory sector news, brokers said.
The Mibtel index was up 0.80 percent to 26,266 points and the S&P/Mib up 0.73 percent to 34,547.
Volume traded was an estimated 7.058 billion euros.
Brokers said there was little in the way of macroeconomic news, with caution ahead of Thursday's European Central Bank meeting although no euro zone interest rate changes are expected.
One broker said the ECB stance means there is little chance of the dollar strengthening after its recent rally, but at least it is unlikely to weaken.
Consumers are particularly cutting spending in the economic slowdown, while company balance sheets and banks' capital remains strong, he said, adding this is negative for consumer product companies.
In the bank sector, BMPS was up 5.06 percent to 2.3775 euros ahead of the end of the sale of rights to its capital increase on Monday.
One broker said BMPS's capital increase is effectively less demanding on investors than its headline 5 billion euros figure at least half covered by the MPS foundation, which owns 50 percent of BMPS.
Unicredit SpA gained 0.51 percent to 4.945. Brokers said Moody's lowering of its credit outlook on the bank to negative was not a particular surprise. One broker said Moody's move was rather belated.
Intesa Sanpaolo SpA (Milan: ISP.MI - news) eased 0.18 percent to 4.7775 after Dresdner Kleinwort cut its rating to 'hold', from 'add'. Banco Popolare (Milan: BP.MI - news) added 0.67 percent to 13.60. Deutsche Bank (Frankfurt: DB9999 - news) reiterated its 'buy' with a lower 20.1 euros target.
Alleanza Assicurazioni SpA was up 1.93 percent to 8.725 after its CEO Ugo Ruffolo quit. Brokers said he was blocking moves on restructuring.
Assicurazioni Generali SpA (Milan: G.MI - news) , which controls Alleanza, lost 0.03 percent to 28.42.
Seat PG rose 4.85 percent to 0.1254.
Other media stocks were mixed amid consumer spending worries. Gruppo Editoriale L'Espresso SpA (Milan: ES.MI - news) fell 2.14 percent to 2.245. Mediaset SpA (Milan: MS.MI - news) rose 3.26 percent to 6.20.
Mediaset's main owner Silvio Berlusconi is likely to be asked to form the next Italian government during this week.
Autogrill SpA fell 1.78 percent to 9.96.
In the telecom sector, Fastweb SpA (Milan: FWB.MI - news) was up 3.55 percent to 21.28, though brokers said there were no major surprises in the first quarter numbers. Telecom Italia SpA (Milan: TIT.MI - news) rose 0.98 percent to 1.336.
STMicroelectronics NV rose 4.40 percent to 8.265.
Among industrials, Piaggio SpA was down 2.50 percent to 1.56 with the market disappointed by results below expectations.
Tenaris SA (Milan: TEN.MI - news) fell 0.69 percent to 17.52 after results, which Cheuvreux said were in line with expectations. The French broker cut the stock to 'underperform', from 'outperform'.
Italcementi SpA fell 0.38 percent to 13.79 after weak results. Buzzi Unicem SpA (Milan: BZU.MI - news) added 2.76 percent to 17.53 after results from one of its units. Brokers said a major Milan bank was urging a switch to Buzzi from Italcementi (Milan: IT.MI - news) .
Among small caps, building materials supplier Marazzi Group SpA rose 9.98 percent to 6.115.
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