Eurofirst advances after recent declines

| November 1, 2006 | 0 Comments

The FTSE Eurofirst 300 added 0.4 percent to 1,449.34 on Wednesday to finally end the session with an advance after four consecutive days of losses.

Banks were mixed on the session. After early losses following the release of its third-quarter report, Deutsche Bank came back to close just 0.1 percent lower to €98.55 after going as low as €97.55 earlier in the day. The report showed that while net profits were about where they had been forecast to be, trading income was significantly lower. Elsewhere in the sector, UBS added 0.9 percent to SFr74.95 after its 5 percent decline on Tuesday.

The telecommunications sector was also mixed. Swedish telecom operator Tele2 added 12.8 percent to SKr85.75 on third-quarter earnings that were higher than had been anticipated and on an announcement that it will withdraw from some European markets and turn its attention from fixed-line operations to broadband. Greek telecom Cosmote also saw gains, adding 2.6 percent to €19.80 on an upgrade from Bear Stearns. On the other hand, Deutsche Telekom dropped 0.2 percent to €13.53 after early gains. Rumors circulated that Russian group Sistema was looking to acquire a stake in DT in trade for control of its telecoms operations.

Continental fell 0.7 percent to €87 on a third quarter report that showed earnings down almost 1 percent before interest and tax. Still, Dresdner Kleinwort reiterated its “buy” recommendation and target share price of €105 on the tire maker.

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