MILAN (Thomson Financial) - Milan shares were lower midday, retracing
earlier gains ahead of the U.S. Federal Reserve rate decision later, with energy
and technology stocks underperforming.
At 12.55 p.m., the Mibtel index was down 0.08 percent at 25,592, while the
S&P/Mib index shed 0.19 percent at 33,777.
"Oil prices have fallen back as the dollar picks up strength ahead of the
Fed meeting later and that's weighed on the energy sector," a trader said.
Oil-related shares were weak with Saipem down 1.39 percent at 28.47 euros,
Tenaris down 1.11 percent at 16.40 euros and Eni 0.32 percent lower at 24.58
euros.
The utility sector was also weak with Enel down 0.86 percent at 7.02 euros,
Snam Rete Gas down 1.35 percent at 4.05 euros and Terna 0.63 percent lower at
2.82 euros.
A2A fell 0.38 percent to 2.35 euros amid reports the group is set to buy
local utility Aspem Varese in an all-share deal worth about 50 million euros.
STMicroelectronics fell 2.49 percent to 7.45 euros after on Tuesday's solid
gains in the wake of positive comments on second-quarter sales.
The sector is weak following disappointing first-quarter results from SAP
and Alcatel. Lehman Brothers also cut its target on the stock to 8 euros from 10
euros while keeping its 'underweight' rating.
Fiat was down 1.50 percent at 14.37 euros as reports said the group could
close a deal Wednesday with Serbia's Zastava to produce cars.
In the banking sector, Banca Popolare di Milano fell 1.96 percent to 7.99
euros, while UniCredit was down 0.89 percent at 4.85 euros.
Banco Popolare rose 0.64 percent to 12.65 euros after it reached an
agreement with Credit Agricole to create a consumer credit joint venture in
Italy. The deal will allow the bank to increase its Tier 1 ratio by 70 basis
points and its core Tier 1 by 50 basis points.
Intesa Sanpaolo rose 0.47 percent at 4.79 euros despite KBW cutting its
rating to 'underperform'. The bank's chairman today confirmed the group's
2007-2009 targets.
Unipol was the day's highest gainer up 1.60 percent at 2.09 euros. A broker
said the group could be eying possible acquisitions.
A broker said the media sector was well supported following good results
from British Sky Broadcasting Group Plc. Mediaset was up 0.97 percent at 5.74
euros, Mondadori rose 0.52 percent to 5.56 euros, while L'Espresso rose 0.84
percent to 2.23 euros, despite UBS cutting its target to 2.35 euros from 2.85
euros. Seat PG was up 1.00 percent at 0.12 euros.
Telecom Italia rose 1.30 percent to 1.33 euros on a technical rebound,
traders said.
Impregilo was up 0.59 percent at 3.90 euros after announcing a consortium it
leads has been awarded a 630 million euros contract to build part of the
Pedemontana Lombarda motorway.
Atlantia rose 0.67 percent to 20.92 euros after a press report it is set to
appeal a government decree placing restrictions on changes of shareholder
control at the group.
Elsewhere, Banca Popolare di Intra rose 20.24 percent to 14.65 euros after
Veneto Banca Holding said it intends to launch a takeover bid on the 23.696
percent of Intra it does not already own in a deal that values Intra at 15.0
euros.
stephen.jewkes@thomsonreuters.com
sj/am
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