Finance Markets

November 13, 2006

European builders higher on 9-month results

Permalink: European builders higher on 9-month results

Filed under: Equities, Economy, Europe

In Europe on Monday the FTSE Eurofirst 300 closed 0.2 percent higher to 1,466.64 as the corporate earnings season continued to produce more positive surprise than negative ones.

In the construction sector, German group Bilfinger Berger added 1.7 percent to €48.40 after its first nine months were better than had been anticipated. The results earned the German builder an upgraded target share price from WestLB. Likewise, Spanish builder Sacyr Vallehermoso closed 15.2 percent higher to €54 on an increase in core earnings in its first nine months.

Deutsche Telekom added 2.6 percent to €13.48 and went as high as €13.62 during the day on the news that its chief executive had resigned and been replaced by the head of its mobile phone unit. Broker reaction was mixed. Morgan Stanley stuck with its rating of “overweight” and raised its target share price for the German telecom company from €13.10 to €13.50. Bear Stearns, on the other hand, repeated its recommendation of “underperform”, saying that a new chief executive would not make much of a difference on a board where the union controls nearly half of the seats.

Losers on the day included Novartis, which dropped 1 percent to SFr72.95 after it was announced that a US Food and Drug Administration decision on the approval of its diabetes drug, Galvus, for use in the United States, will be delayed for three months.



Related financial stories:

London markets move downwards:  The London markets were down in mid-afternoon trading on Friday, following a trend that affe...

Business in usual in Europe after no vote:  Business was pretty much as usual in Europe the day after France voted to reject the Europea...

European carmakers see declines:  Weakness in the automobile manufacturing sector hurt European stock markets on Tuesday, bu...

FTSE 100 moves towards 44 month high:  The FTSE 100 reached its highest level in 44 months to close at 5,327.5, a gain of 36.7 poin...

May US housing starts up 5 percent:  Housing starts in the United States were up more than had been expected in May. Overall, ...

Latest Headlines