(Updates with individual stock data)
MILAN (Thomson Financial) - Milan shares ended higher in thin volumes with gains led by Fiat ahead of August car registration data and a solid insurance sector performance.
Alitalia reduced earlier losses but was still the leading decliner on the index on uncertainty over its future.
The Mibtel index finished up 0.34 pct at 31,389 while the S&P/Mib rose 0.23 pct to end at 40,281 on volumes worth some 2.946 bln eur.
'There are very few trading ideas due to the fact Wall Street is closed today,' one dealer, noting that trading volumes were extremely thin today.
Leading the market higher was Fiat, ending up 4.17 pct at 20.28 eur ahead of car registration data for August.
According to sector research institute Centro Studi Promotor, the Italian car market in August had a positive performance even though at slower growth rates than in July, when shipments rose an annual 10.1 pct.
One dealer noted that Fiat's market share in August could have risen to some 33 pct from 30.6 pct in July, also thanks to the sale of the new 500 model.
Unipol also continued to be a leading gainer, ending up 3.20 pct at 2.58 eur as Euromobiliare upped the stock to 'buy' with a 3.0 eur target price.
According to the broker, Unipol could spin off its Unipol Banca banking unit and sell it to Banca Popolare di Milano. Unipol would then take a minority stake in the newly created banking group.
Other analysts note that some investors are betting that Unipol may not find a partner and this makes the restitution to shareholders of the group's excess capital, worth some 1.8 bln eur, more likely.
Banca Popolare di Milano ended up 0.56 pct at 10.72 eur as Deutsche Bank reiterated its 'hold' stance on the group while cutting the target price from 13.5 eur to 12.5 eur.
Among other insurers, Fondiaria-SAI added 2.12 pct to end at 35.19 eur while Generali edged up 0.63 pct at 30.22 and its life insurance unit Alleanza ended up 0.26 pct at 9.49.
In the banking sector, Unicredito Italiano ended 0.25 pct higher at 9.49 eur while its merger partner Capitalia added 0.42 pct to end at 7.01 and Intesa Sanpaolo finished up 0.36 pct at 5.55.
Alitalia fell 2.40 pct to 0.81 eur on uncertainty regarding the sale of the Italian Treasury's 49.9 pct stake. British Airways declined to comment rumors it might be interested.
Banco Popolare finished 0.93 pct lower at 18.19, UBI Banca dipped 0.05 pct at 18.75 while Banca Monte dei Paschi di Siena ended 0.05 pct higher at 4.667.
Banca Italease, in which Banco Popolare ows a stake of some 30 pct, ended up 6.08 pct at 17.78 eur ahead of the shareholders' meeting on Saturday which will approve the new board and a 700 mln eur capital hike to restructure the group's finances which were hit by unexpected derivative exposure.
In the energy sector, Eni shed 0.63 pct to end at 25.22 eur weighed down by uncertainties over developments at the Kashagan oil field in Kazakhstan with the Kazakh government possibly suspending operations for more than the already announced three months. stephen.jewkes@thomson.com ysc/ajb/ysc/ajb 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
