Eurofirst slightly lower

| April 25, 2006 | 0 Comments

The FTSE Eurofirst 300 was down 0.1 percent to 1,387.35 on Tuesday despite gains in the automobile manufacturing sector.

Swiss luxury goods manufacturer Richemont dropped 3 percent to SFr64.15 on profit taking after it reported that annual sales was up 17 percent due to growth in its jewelry and watch making units. Richemont’s shares have added 16 percent since the beginning of the year.

Also down on the day was household appliance maker Electrolux. The company’s shares dropped 2.2 percent on the day to SKr218.50 after Goldman Sachs reiterated its “underperform” rating and cut its earnings per share estimate by 10 percent on the prospect of further rises in the cost of raw materials.

Gainers on the day included STMicroelectronics, which added 1.2 percent to €15.72 ahead of its quarterly earnings report which was due to be released after the close of trade. Infineon Technologies added 2.6 percent to €9.44 on an upgrade from “equal-weight” to “overweight” from Lehman Brothers. In addition, Infineon’s target share price was raised from €8 to €12.

Telecommunications company TeliaSonera was also up on the day, by 1.9 percent to SKr48.90, on higher than expected first quarter core earnings and a proposal for an additional annual dividend.

Among carmakers, Renault added 7.1 percent to €92.05 after it said its first quarter sales were up by 5.8 percent, year on year, better than the 4 percent advance that had been expected. Merrill Lynch raised Renault’s target share price from €85 to €100, while Dresden Kleinwort Wasserstein upped the target from €95 to €97. Elsewhere in the sector, Volvo was up 4.4 percent to SKr370.50, also on better than expected profits in the first quarter.

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