Greek banks decline on Turkey ties

| November 20, 2006 | 0 Comments

The FTSE Eurofirst 300 was higher on Monday, ending the session 0.3 percent higher to 1,466.91.

The car and truck making sector did not have as good a day. Porsche and Volkswagen were both lower on indications that Porsche does not intend to attempt a complete takeover of VW, as had been rumored last week. VW dropped 0.1 percent to €80.71, while Porsche was 1.3 percent lower to €889. French carmakers Renault and Peugeot each fell 0.8 percent on the session, to €95.40 and €48.46 respectively. DaimlerChrysler bucked the trend in the sector and added 0.2 percent to €47.26 on upgrades from HVB and Deutsche Bank.

In the insurance sector, reinsures were up. Hannover Re added 0.2 percent to €33.08 and Munich Re gained 1.1 percent to €125.67. Swiss Re was 3.1 percent higher to SFr106.3 on the lowest number of claims made in ten years and healthy premium payments which generated high reserves.

Among stock exchanges, Deutsche Borse gained 2.5 percent to €126.00 on consolidation hopes after Nasdaq offered for the London Stock Exchange.

Aerospace and defense company Thales dropped 1.2 percent to €37.22 even though UBS upped its target share price from €35 to €39 but left its recommendation at “neutral”.

Credit Suisse added 0.2 percent to SFr80.80 even though UBS downgraded the investment bank from “add” to “hold”. Meanwhile, Greek banks were lower on the session due to their exposure to the Turkish banking sector. The declines came after the European Union turned up the pressure on Turkey to resolve its differences with Cyprus ahead of an entrance of Turkey into the EU. National Bank of Greece dropped 1 percent to €36.60, while Alpha Bank was 1.5 percent lower to €23.70 and EFG Eurobank fell 1.8 percent to €28.20.

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