(Updating with details on single stocks)
MILAN (Thomson Financial) - Share prices closed lower, though off intraday lows, as Wall Street opened weak again after last Friday's plunge, with Fastweb underperforming as its shares went ex-dividend.
The Mibtel index was down 1.63 pct to 30,651 points and the S&P/Mib fell 1.62 pct to 39,242.
Volume traded was an estimated 5.773 bln eur.
Fastweb ended down 7.08 pct at 33.62 eur after paying a dividend of 3.77 eur per share. The stock was also undermined by Credit Suisse cutting its target price to 32 from 36.
Eni was down 2.25 pct at 24.76 eur after paying an interim dividend of 0.6 eur per share. The stock received support in the afternoon from news that the consortium it leads and the Kazakh government have outlined the framework for continuing negotiations to reach a deal over the Kashagan oilfield.
Saipem fell 2.32 pct to 29 eur after oil prices fell back and concerns about a slowdown in world growth caused worries over a fall in demand for oil products. UBS however raised its target to 34.5 eur from 32.
Finmeccanica fell 2.59 pct to 19.94 after UBS cut its price target to 25 eur from 27, albeit confirming its 'buy' recommendation.
It was a bad day for luxury stocks with Bulgari down 2.96 pct at 10.82 eur and Luxottica down 2.04 pct at 23.97 because of concerns of dollar exposure.
It was a poor day too for construction stocks which fell in step with a weak European sectoral performance. Impregilo was down 3.3 pct at 5.13 eur, Italcementi fell 2.65 pct to 15.58 while Buzzi lost 2.04 pct to 18.27.
Fiat fell 2.23 pct to 22.34 eur on concerns about economic growth and slowing car demand.
AEM fell 1.51 as its shareholders approved the merger with ASM. AEM chairman said he expects the dividend growth rate to increase after the merger.
Generali fell 1.14 pct to 30.46 eur as Chevreux raised its target price to 36.7 eur from 36, maintaining its 'outperform' rating.
On the upside the leading climber was Unipol, up 0.9 pct at 2.48 eur following a report over the weekend that the group will report full-year profits of 450 mln eur from 362 mln last year thanks mainly to non-life business. The report also said the company will decide soon on how to use an estimated 1.5 bln eur in excess capital. Unipol is currently in talks with BPM over a possible alliance. BPM fell 2.27 pct to 10.32.
Pirelli rose 0.51 pct to 0.87 eur with the Brazilian regulator Anatel set to clear tomorrow the sale of an 18 pct stake in Telecom Italia to Telefonica and a group of Italian investors. Traders are speculating some of the cash from the sale could be paid back to shareholders by way of extraordinary dividend. stephen.jewkes@thomson.com sj/jlc COPYRIGHT Copyright Thomson Financial News Limited 2007. All rights reserved. The copying, republication or redistribution of Thomson Financial News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Financial News.
© 2007 AFX News
