(Updates with full report)
MILAN (Thomson Financial) - Milan shares ended flat in a very volatile market which lacked new trading ideas and with loss in heavy-weights like Eni and Generali putting downward pressure on the index.
The Mibtel index added just 0.07 pct to finish at 30,205 while the S&P/Mib ended up 0.11 pct at 38,953 with some 5.304 bln eur worth of shares traded.
'Who managed to get out of the market well last month may be trying to re-build some positions buying the safer and more solid shares,' said Nuovi Investimenti SIM head of research Davide Manenti.
Another dealer noted that the Milan market is stuck 'in a very narrow range with the S&P/Mib futures between 38,900 and 39,300 and it doesn't seem to have any intention of breaking out of this range.'
'The turbulence is still not over and from now to the end of the year I see the market coming down, maybe not dramatically, but down. We have to see the repercussions on growth with consumption set to slow going forward,' he added.
Leading the index higher was Banco Popolare, which ended up 3.64 pct at 18.61 supported by Morgan Stanley which views it as its favourite Italian cooperative bank and for most of the session by Banca Italease, in which it has a stake of some 30 pct.
Banca Italease, which in the past two trading sessions touched lows not seen since Aug 2005, rose 6.69 pct to finish at 14.42.
Its shareholder pact met today to name a new board upon request by the Bank of Italy, with reports indicating former Toro Assicurazioni chairman Lino Benassi in pole position to become Italease's new chairman.
'We have to understand what the future strategy of Italease will be. It could be a long-term bet,' one dealer said noting that the Bank of Italy also imposed that it stop carrying out derivatives transactions with clients.
Italease last month announced a 387.7 mln eur loss in the first half due to a 685.8 mln loss on derivatives contracts.
Among other banking shares Unicredito finished down 0.16 pct at 6.175 while its merger partner Capitalia shed 0.13 pct to end at 6.86.
Today the antitrust held an intermediate meeting on the merger of the two banks with the goal of sending by the end of its month a draft copy of its decision to insurance regulator ISVAP, which will have 30 days to make its observations, so as to give its ruling by the end of September.
Intesa Sanpaolo finished up 0.21 pct at 5.63 with Morgan Stanley viewing it 'as the best name to play Italian banks re-rating.'
Among insurers, Generali fell 0.75 pct at 28.93 and its life insurance unit Alleanza finished down 0.73 pct at 9.31 with dealers noting that during last week's turbulence these were among the shares that fell the least.
Mediobanca, which controls Generali, finished down 0.23 pct at 15.52.
Fiat continued to rebound ending 1.65 pct higher at 18.74, after recent underperformance.
Finmeccanica added 0.87 pct to end at 20.09 after the CEO of Alenia, a unit of Finmeccanica, said he expects to receive an order for some 10 C-27J Spartan transport planes from an Eastern European country by year end.
On the downside, there was pressure on selective oil related stocks, Snam Rete Gas finishing down 1.14 pct at 4.1025 and Eni ending down 1.05 pct at 23.66.
'On Eni the newsflow has not been positive but if it starts going towards the 22 eur mark, it becomes a great buying opportunity,' a dealer said.
Today, the Kazakh government said it could halt the giant Kashagan oilfield project, regarded as one of the largest oilfield discoveries of the past 30 years, because of violations of environmental regulations by its operator, Eni. yael.schrage@thomson.com ysc/rfw 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
