MADRID (Thomson Financial) - Share prices moved off session highs in quiet midday trading as Telefonica dipped into the red on profit-taking after in line first quarter results, while Ferrovial led the construction sector higher.
At 12:48 p.m., the IBEX-35 index was up 75.7 points at 14,092.10, after trading in a range of 14,060-14,137.
Equities opened higher after gains in Tokyo and Wall Street's overnight recovery from lows, but pared strength over the morning in quiet trade ahead of key U.S. April inflation data.
'There are concerns that U.S. CPI could come in quite negative, which could bring a sell-off on Wall Street, but overall trading is very quiet,' a Madrid-based trader said.
'Telefonica has drifted lower... The stock had a decent run last week on hopes for solid first quarter figures, but there's nothing in the numbers to inspire further buying,' he added.
Telefonica was down 0.03 euros at 19.15, off a high of 19.32 and near a low of 19.12, after reiterating full-year targets following a 22.4 percent rise in net profit to 1.538 billion euros in the first quarter from a year earlier, in line with analysts' forecasts.
Ferrovial climbed 2.0 or 3.81 percent to 54.45, lifted by solid first quarter results released late on Tuesday and positive newsflow on its BAA arm, including improved visibility over its refinancing.
'Ferrovial is getting a boost from results, which were slightly better than expected and the improved BAA visibility,' a trader at a local brokerage said, also noting news that Caisse de Depots could have sold a 5 percent stake in BAA 'at a nice price.'
Other constructors were higher, with FCC up 0.58 at 46.58 after posting first-quarter results slightly ahead of analyst estimates, while Acciona gained 3.70 or 2.11 percent to 179.15.
Banks were mixed, with Santander up 0.08 at 14.09, while BBVA was flat at 15.07 and Popular shed 0.01 to 11.10. Bankinter added 0.03 to 9.94 amid ongoing speculation of stake-building by its core shareholders.
Underperforming the broad market, Iberia dropped 0.06 or 2.49 percent to 2.35 after first quarter results depressed by rising fuel costs and weak passenger traffic.
Among other companies reporting results today, Abertis added 0.07 to 20.89, Abengoa climbed 1.11 or 5.05 percent to 23.11 and Codere climbed 0.61 or 4.73 percent to 13.50.
Solaria put on 0.29 or 2.61 percent to 11.41 after reporting late on Tuesday net profit grew more than sixfold in the first quarter from a year earlier, boosted by the group's new production capacity. tfn.europemadrid@thomson.com tr/jdy/tc 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.
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