(Updating with full report)
MILAN (Thomson Financial) - Share prices closed flat, with investors uncertain on the next direction of the market, with gains in BMPS after recent hefty falls offsetting Impregilo on worries of a construction sector slowdown, brokers said.
The Mibtel index was up 0.04 pct at 29,735 points and the S&P/Mib gained 0.23 pct to 38,535.
Volume traded was an estimated 5.982 bln eur.
Brokers said the economic slowdown being seen in US, parts of Europe and Japan will be partly offset by emerging economies, which continue to grow.
US interest rates are expected to see a cut in December, while in the euro zone, any cuts in rates are unlikely until next Spring, given the higher inflation outlook, one broker said.
Another negative factor today was comments from international brokers saying that fourth quarter earnings could be weaker than expected, he said.
On the positive side was BMPS, up 3.43 pct at 3.7525 eur. Reports said bank officials have been touring Europe to promote its recent 9 bln eur acquisition of Banca Antonveneta, judged expensive by analysts.
The BMPS share had fallen sharply on the Antonveneta deal, half of which will be funded by a rights issue. Today, BMPS's majority shareholder, the MPS foundation, said it will underwrite the 4.5 bln rights issue.
Mediobanca added 2.58 pct to 16.47 after the MPS foundation said it has taken a 1.9 pct stake in the investment bank.
Banco Popolare extended recent losses, down 2.47 pct at 14.34, as brokers continued to downgrade its prospects. Both Merrill Lynch and Dresdner Kleinwort cut their earnings estimates on the bank.
BPM gained 0.58 pct to 10.45. Reports say it will take at least another month to examine a possible merger with Credit Mutuel.
Unicredit lost 1.80 pct to 5.515.
Energy stocks were mixed with utilities benefiting from the economic uncertain. Snam RG rose 1.54 pct to 4.43. Oils were mixed with Eni up 2.72 pct at 24.20 and Saipem down 3.70 pct at 27.35.
Impregilo lost 4.08 pct to 4.3425. Cement stocks were mostly lower on the economic slowdown. Italcementi fell 2.77 pct to 13.26 and Buzzi Unicem was down 0.03 pct at 19.04.
Tenaris gained 2.16 pct to 16.40, benefiting from the merger speculation on sector peer Vallourec.
Telecom Italia gained 1.36 pct to 2.17, off its high on reports that hedge funds are mulling a break up plan.
Fiat was down 3.18 pct at 19.46. Yesterday, CEO Sergio Marchionne gave investors in London a lorry and car product order update. nigel.tutt@thomson.com nt/lam 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
