(Updating with full report)
MILAN (Thomson Financial) - Share prices closed higher despite a sell-off in Parmalat shares following news that New York federal judge Lewis Kaplan has rejected the food group's motion to dismiss a class action by investors claiming billions of dollars.
The Mibtel index was up 0.15 pct to 32,935 points and the S&P/Mib rose 0.09 pct to 41,990.
Volumes were an estimated 4.443 bln eur.
Parmalat ended down 4.46 pct at 3.00 eur after being suspended limit down. Lawyers for an investors class action said US judge Kaplan had rejected a Parmalat demand for their 'billion dollar' action to be dismissed. One broker said he is concerned that, in a worst case scenario, Parmalat could go to the wall given that investors lost 8 bln eur in Parmalat's Dec 2003 collapse, while the restructured and relisted Parmalat has only a 4.7 bln market capitalisation.
Banco Popolare, the new bank created by the merger of BPVN and BPI, retraced earlier losses to end up as Fitch assigned an 'A' rating to the bank's credit position with a stable outlook.
The bank was punished in earlier trading on the back of more heavy losses for Banca Italease in which it holds around 30 pct. Italease closed down 7.81 pct at 18.42 eur on ongoing fears its derivative exposure may need heavy provisions and a capital hike. On Friday, Italease closed out four-fifths of its derivative positions with bank counterparties for a total outlay of 610 mln eur, above market expectations.
Saipem closed up 1.74 pct to 25.79 eur, touching a new historic high, on the back of a firm oil price.
The oil price also supported Eni, up 1.49 pct at 27.30 eur.
Fiat rose 1.59 pct to 22.43 eur after the group's CEO said the group's market share in June is over 30 pct. Final figures for June car sales, out after the market closed, showed Fiat's overall market share was 31.65 pct, against 30.47 a year earlier.
Cement stocks rebounded after recent losses and investor neglect with Buzzi up 1.33 pct at 25.87 eur and Cementir up 6.92 pct at 11.29.
Impregilo climbed 2.92 pct to 5.88 eur after last week's heavy losses after after a Naples judge ordered the sequestration of 750 mln eur of the firm's assets. The stock entered Milan's blue-chip S&P/Mib index today following the BPVN and BPI merger.
Intesa Sanpaolo fell 0.09 pct to 5.52 eur. The bank announced after the market had closed that it has cut its trading stakes in Eni and Enel to below 2 pct.
Fonsai fell 0.17 pct to 35.83 eur even though S&P raised its credit rating on the insurer to 'BBB+' from 'BBB'. stephen.jewkes@thomson.com sj/rfw/sj/jfr COPYRIGHT Copyright AFX News Limited 2007. All rights reserved. The copying, republication or redistribution of AFX News Content, including by framing or similar means, is expressly prohibited without the prior written consent of AFX News.
© 2007 AFX News
