(Updating with full report)
MILAN (Thomson Financial) - Share prices closed lower, falling in the afternoon on negative U.S. home sales data, led by Impregilo and Fiat on profit-taking, brokers said.
The Mibtel index was down 1.06 percent at 21,922 points and the S&P/Mib fell 0.61 percent to 28,665.
Volume traded was estimated at 3.596 billion euros.
Brokers said the trend in the oil price continues to support equities. One broker said forecasts for the future oil price vary wildly and he sees the price stabilising around $120.
The stronger dollar is another positive factor, particularly supporting luxury stocks, they said.
The low volumes suggest there is little conviction in an end to the bear market in shares, they said.
Impregilo fell 5.63 percent to 3.115 euros, depressed by the continued absence of a pending court judgement on the sequestration of company assets in a Naples refuse dispute.
Cements were also sharply lower, with Buzzi Unicem down 3.92 percent at 13.93 and Italcementi off 4.66 percent at 9.385. Both companies have U.S. activities.
Fiat lost 4.82 percent to 11.29. The stock rose 13 percent Wednesday in reaction to strong second quarter earnings and the reiteration of 2008 and 2009 forecasts.
Thursday, brokers said Fiat will have a tough time meeting its 2009 forecasts. Lehman Brothers said its sees risks to 2009 if volumes decline and Fiat is unable to pass on raw material prices.
Indesit lost 3.77 percent to 7.615. Analysts said they see slowing demand for its products, including in east Europe, with little scope to pass on higher raw material prices, such as for steel and plastics.
STMicro fell 2.04 percent to 7.05 after Wednesday's positive reaction to results. Thursday, brokers said they are 'neutral' to 'overweight' on the stock, with JPMorgan saying currencies are weighing on STMicro earnings.
Finmeccanica eased 0.68 percent to 18.10.
Oils were on the downside. Saipem fell 4.74 percent to 23.29. Brokers said the oil price factor offset major order wins. Tenaris was down 4.83 percent to 18.53. Eni lost 2.38 percent to 21.77.
Banks were higher, supported by U.S. news on Fannie Mae and Freddie Mac measures, brokers said.
Intesa Sanpaolo rose 3.39 percent to 3.72. Unicredit was up 0.48 percent at 4.015. BPM was up 0.64 percent at 6.625. There were reports BPM will appoint a new managing director Thursday.
Generali eased 0.26 percent to 23.20. Merrill Lynch said it has an 'underperform' recommendation on the stock.
Telecom Italia was up 1.81 percent at 1.236. Brokers see a business plan update this year, even if an August date was denied for its announcement, with the aim to curb the company's costs.
Luxuries were mostly higher on the dollar factor. Geox added 1.42 percent to 7.02. Bulgari gained 3.66 percent to 7.09. UBS reiterated is 'buy' on Bulgari. Luxottica was down 2.52 percent at 16.00.
Media were mixed. Seat PG was up 1.63 percent to 0.0747. L'Espresso was down 2.25 percent to 1.564 after yesterday's weak results. Cheuvreux upped L'Espresso to 'underperform', from 'sell'.
Mondadori lost 3.57 percent to 3.9025. There were reports that its summer advertising is weak. nigel.tutt@thomsonreuters.com nt/lam COPYRIGHT Copyright Thomson Financial News Limited 2008. 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.
© 2008 AFX News
