(updating with full report)
MILAN (Thomson Financial) - Share prices closed lower, pulled down by Wall Street's weak performance this afternoon after falls on Chinese markets earlier, and led by STMicro and Buzzi Unicem, brokers said.
The Mibtel index finished 0.61 pct lower at 33,443 and the S&P/Mib was off 0.72 pct to 42,974.
Volume was an estimated 7.422 bln eur.
Brokers say the market has recovered from its correction at the end of February to regain previous levels, while growth prospects and mixed earnings for the first quarter do not justify a further rise.
One broker said next week's first quarter US GDP is likely to show 'a loss of momentum with respect to the fourth quarter of 2006'.
This US growth trend and the accompanying weakening of the dollar could make the European Central Bank delay interest-rate rises, he said.
STMicro, down 2.13 pct to 14.85 eur, came off its lows after Nokia's results during the morning. STMicro is a major supplier to Nokia.
Deutsche Bank raised its price target on STMicro to 14.5 eur, from 13.0, but left its 'hold' rating unchanged.
In the cement sector, Buzzi Unicem lost 1.75 pct to 22.99. Most cement stocks have performed well this year. Cementir was down 0.49 pct to 10.06 after saying its long-term forecasts are 'conservative'.
Alitalia extended recent falls, down 1.33 pct to 0.936, on worries that minority shareholders will lose out in the ongoing privatisation process, in which the government plans to sell a minimum of 39.9 pct in the airline.
On the positive side, Alleanza was up 1.44 pct to 10.02, well off its highs, on speculation that the company plans a share buy-back or extraordinary dividend to mop up its excess capital.
Generali, which controls Alleanza, said during the afternoon part of the session that it has not called meetings to decide on any share operation at Alleanza. Generali lost 0.81 pct to 33.05.
Unipol fell 1.66 pct to 2.905.
Fiat was up 0.50 pct to 20.15 ahead of next Monday's first-quarter results. Analysts said they see further improvement in Fiat's auto sector, supported by new models and strong Brazil sales.
Parmalat was a late gainer, up 1.61 pct to 3.245.
Seat PG rose 0.46 pct to 0.4795 after announcing it will present a new business plan in May, as well as early repayment of loans.
Banks were mixed. Unicredito was off 1.27 pct to 7.245 on continued speculation it plans to merge with Societe Generale. One broker said he sees 2 bln eur of synergies and strong positions in major European markets.
Intesa Sanpaolo fell 1.16 pct to 5.87. Capitalia lost 0.44 pct to 7.04.
After the market close, Capitalia chairman Cesare Geronzi said the bank has no plans to merge with a foreign bank, while it is not in talks with Unicredito on a merger, as some analysts speculate.
Telecom Italia was up 0.11 pct to 2.3475. Pirelli denied it has received further offers to buy all or part of its stake in Olimpia, which owns 18 pct of Telecom Italia. Pirelli lost 0.48 pct to 0.895.
Eni fell 1.26 pct to 24.29.
Luxottica fell 0.53 pct to 24.19 ahead of first-quarter results next Tuesday, expected to be depressed by the impact of poor weather on US retail sales and the weak dollar. nigel.tutt@thomson.com nt/jsa/nt/jsa/nt/ic 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
