PARIS (AFX) - Share prices were flat at midday, after recouping early losses sparked by negative news on a number of stocks, dealers said.
At 12.15 pm the CAC-40 index was unchanged at 5,591.46.
On the Matif, January CAC-40 futures were trading down 0.5 point or 0.01 pct at 5,594.5, while the euro was also down slightly at 1.2922 usd versus 1.2925 usd at close of trade yesterday.
Leading the gainers, SEB jumped 6.70 eur or 5.92 pct to 119.80 after publishing strong fourth quarter sales figures, up 6.5 pct year-on-year at 921.1 mln eur and above analysts' expectations.
Full-year figures were also slightly ahead of forecasts at 2.651 mln eur, up 7.6 pct on the previous year, leading the group to revise full-year net profit targets up 2.8 pct.
CM-CIC Securities and Societe Generale both reiterated their 'buy' recommendations on the stock, citing a positive outlook for European sales, where pricing pressures should continue to ease going forward.
Societe Generale said SEB currently looks undervalued as the market is factoring in too much risk. But Fideuram Wargny highlighted uncertainties over SEB's takeover of cookware firm Zhejiang Supor Co Ltd in China, which still needs to be approved by the Chinese authorities, and kept its 'reduce' recommendation.
Elsewhere, Rhodia climbed 0.10 or 3.75 pct to 2.77 amid talk that Akzo Nobel could be interested in a takeover, although some dealers considered the rumour unfounded. A US fund manager advised financial market regulator AMF that it trimmed its holding in Rhodia to below the 5 pct reporting threshold, but the previous level was unknown, as were the buyer or buyers.
A London-based dealer said the carbon credits business makes Rhodia a very attractive target, as this alone leads to an embedded value of 4 eur per share.
Remy Cointreau also gained 2.19 or 4.45 pct to 51.40 ahead of the publication of third quarter sales figures tomorrow.
On the downside, EADS dropped 0.83 or 3.22 pct to 24.91 after stating that Airbus would probably deliver an operating loss for the full year.
The main causes cited were one-off charges in relation to settlements with customers, impairment of assets, the financial impact of the Power8 restructuring programme and additional A380 charges not originally foreseen.
Paris broker Oddo, agreeing with EADS, said it now expects a flat group operating profit in 2006. Oddo had earlier forecast a profit of 1.7 bln eur. It repeated its 'reduce' stance on the stock.
Vallourec shed 3.10 or 1.55 pct to 197.4 amid rumours of a share issue. The stock was also impacted by a continuing negative trend in oil and oil-related stocks, as crude prices remained at their lowest level since May 2005.
Among technology stocks, STMicroelectronics was down 0.16 or 1.07 pct to 14.74, reversing yesterday's gains after Intel reported a 39 pct decline in net profit yesterday.
CM-CIC Securities maintained its 'reduce' recommendation on STMicroelectronics, emphasising slowing growth in the semi-conductors sector.
On the second line, TF1 extended yesterday's losses, falling 0.4 or 1.47 pct to 26.76 after Merrill Lynch downgraded the stock to 'neutral' from 'buy'.
The US broker said the market has already factored in the benefits of the TPS-Canal Plus merger, and the company needs to deliver stronger advertising revenues to continue to outperform.
Also in the media sector, M6 was off 0.78 or 2.93 pct at 25.88 at midday, as news emerged that Morgan Stanley was placing 2.8 mln of stock in the market, representing 2 pct of the French teelevision channel's capital. paris@afxnews.com vb/mjs/cmr COPYRIGHT Copyright AFX News Limited 2006. 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. AFX News and AFX Financial News Logo are registered trademarks of AFX News Limited
At 12.15 pm the CAC-40 index was unchanged at 5,591.46.
On the Matif, January CAC-40 futures were trading down 0.5 point or 0.01 pct at 5,594.5, while the euro was also down slightly at 1.2922 usd versus 1.2925 usd at close of trade yesterday.
Leading the gainers, SEB jumped 6.70 eur or 5.92 pct to 119.80 after publishing strong fourth quarter sales figures, up 6.5 pct year-on-year at 921.1 mln eur and above analysts' expectations.
Full-year figures were also slightly ahead of forecasts at 2.651 mln eur, up 7.6 pct on the previous year, leading the group to revise full-year net profit targets up 2.8 pct.
CM-CIC Securities and Societe Generale both reiterated their 'buy' recommendations on the stock, citing a positive outlook for European sales, where pricing pressures should continue to ease going forward.
Societe Generale said SEB currently looks undervalued as the market is factoring in too much risk. But Fideuram Wargny highlighted uncertainties over SEB's takeover of cookware firm Zhejiang Supor Co Ltd in China, which still needs to be approved by the Chinese authorities, and kept its 'reduce' recommendation.
Elsewhere, Rhodia climbed 0.10 or 3.75 pct to 2.77 amid talk that Akzo Nobel could be interested in a takeover, although some dealers considered the rumour unfounded. A US fund manager advised financial market regulator AMF that it trimmed its holding in Rhodia to below the 5 pct reporting threshold, but the previous level was unknown, as were the buyer or buyers.
A London-based dealer said the carbon credits business makes Rhodia a very attractive target, as this alone leads to an embedded value of 4 eur per share.
Remy Cointreau also gained 2.19 or 4.45 pct to 51.40 ahead of the publication of third quarter sales figures tomorrow.
On the downside, EADS dropped 0.83 or 3.22 pct to 24.91 after stating that Airbus would probably deliver an operating loss for the full year.
The main causes cited were one-off charges in relation to settlements with customers, impairment of assets, the financial impact of the Power8 restructuring programme and additional A380 charges not originally foreseen.
Paris broker Oddo, agreeing with EADS, said it now expects a flat group operating profit in 2006. Oddo had earlier forecast a profit of 1.7 bln eur. It repeated its 'reduce' stance on the stock.
Vallourec shed 3.10 or 1.55 pct to 197.4 amid rumours of a share issue. The stock was also impacted by a continuing negative trend in oil and oil-related stocks, as crude prices remained at their lowest level since May 2005.
Among technology stocks, STMicroelectronics was down 0.16 or 1.07 pct to 14.74, reversing yesterday's gains after Intel reported a 39 pct decline in net profit yesterday.
CM-CIC Securities maintained its 'reduce' recommendation on STMicroelectronics, emphasising slowing growth in the semi-conductors sector.
On the second line, TF1 extended yesterday's losses, falling 0.4 or 1.47 pct to 26.76 after Merrill Lynch downgraded the stock to 'neutral' from 'buy'.
The US broker said the market has already factored in the benefits of the TPS-Canal Plus merger, and the company needs to deliver stronger advertising revenues to continue to outperform.
Also in the media sector, M6 was off 0.78 or 2.93 pct at 25.88 at midday, as news emerged that Morgan Stanley was placing 2.8 mln of stock in the market, representing 2 pct of the French teelevision channel's capital. paris@afxnews.com vb/mjs/cmr COPYRIGHT Copyright AFX News Limited 2006. 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. AFX News and AFX Financial News Logo are registered trademarks of AFX News Limited
© 2007 AFX News
