(updating with full report)
MILAN (Thomson Financial) - Share prices closed higher, supported by the US macroeconomic data this afternoon, and led by Fondiaria-SAI on a broker comment, by Saipem on the higher oil price and by Fiat on strong European car registrations, brokers said.
The Mibtel index finished up 0.62 pct at 33,480 and the S&P/Mib gained 0.61 pct to 43,016.
Volume was an estimated 7.341 bln eur.
One broker said today's US data was 'rather comforting' as far as equity markets are concerned, though the market is also looking towards next week's figures on retail sales and inflation.
But, even with economic data next week showing reduced inflationary pressures, the US monetary authorities are unlikely to cut their interest rates until July at the earliest, he said.
In the euro zone, the key refinancing rate is certain to rise in June to 0.25 pct points to 4.00 pct, he said, adding that beyond June, 80 pct of economists expect a rise to 4.25, and a minority see a further rise to 4.50 if strong economic growth continues.
Economic growth and upcoming first quarter earnings could support further rises in equity prices, he added.
Another broker said light volumes suggest the market is reluctant to push the S&P/Mib above the 43,000 mark, at least in the short-term.
Fondiaria-SAI rose 4.38 pct to 37.65 after CA Cheuvreux put the stock on its 'selected list', upping its price target to 50.0 eur from 48.7, after yesterday's analyst meeting broadly confirmed its business plans.
Generali fell 0.60 pct to 33.15.
Mediolanum was up 1.63 pct to 6.38. Brokers pointed to the continued buying of shares by CEO Ennio Doris, adding that they do not rule out merger and acquisition activity by the fund manager.
Intesa Sanpaolo rose 0.51 pct to 5.885 ahead of tomorrow's business plan announcement, which is also expected to include a hefty dividend payment.
In the oil sector, Saipem rose 3.57 pct to 23.20. Brokers said the sector continues to benefit from strong capital spending by oil companies. There was a report it will build an LNG terminal in Italy.
Eni rose 0.90 pct to 24.69.
Fiat added 2.21 pct to 19.50 after confirming European market share gains in latest March car registration data this morning. UBS upped its Fiat price target to 24 eur, from 20 on higher earnings estimates.
Telecom Italia rose 2.02 pct to 2.3975, putting on a spurt in late trading ahead of Monday's shareholder meeting and a decision on a revamped board, including a new chairman.
One broker said the situation on shareholder changes at Telecom Italia is confused, also affecting Pirelli, which is trying to sell part of its stake in Telecom Italia. Pirelli lost 0.67 pct to 0.901
On the negative side, STMicro fell 0.83 pct to 15.02 after yesterday's gains on unconfirmed reports of a flash memory alliance with Intel.
Cements were mixed. Brokers said the sector has outperformed and is down on investors to other sectors, which have lagged the overall market.
Italcementi lost 0.60 pct to 23.21. Buzzi Unicem was up 0.94 pct to 23.72, well off its earlier lows.
Geox lost 1.30 pct to 13.69. UBS cut its rating to 'neutral', from 'buy', while raising the price target to 14.8 eur, from 13.7, citing the absence of triggers for upgrading earnings. nigel.tutt@thomson.com nt/amb/nt/jsa 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
