Prudential leads insurers higher on upgrades in sector

| June 28, 2011 | 0 Comments
Prudential leads insurers higher on upgrades in sector

European equities markets were higher Tuesday on hopes that the Greek parliament will pass austerity measures so that European bailout funds will continue to be paid to Greece and allow the nation to escape default, but European Central Bank board member Juergen Stark said that if Greece does not implement the measures, bailout money would likely not be given to Greece after July.

The FTSE 100 was up 0.78 percent to 5,766.88 in London, while the FTSE 250 added 0.5 percent to 11,606.4, with most insurers higher after Prudential added 2.62 percent on a recommendation of “buy”, up from “neutral”, from Goldman Sachs, which also upgraded Legal & General (LSE: LGEN) from “sell” to “neutral”, sending it 1.28 percent higher.

London banks were higher, with Royal Bank of Scotland Group (LSE: RBS) adding 4.16 percent for the best performance in the sector and on the 100, while Dixons Retail (LSE: DXNS) was the best performer on the 250 and in the retail sector as it added 6.51 percent.

Food processor Tate & Lyle (LSE: TATE) was down 1.83 percent and turned in the worst performance on the 100, while fellow food processor Devro (LSE: DVO) led declines in the food and beverage sector as it dropped 4.1 percent, and Cable & Wireless Worldwide (LSE: CW) led the 250 and the telecommunications sector lower as it fell 13.88 percent after it said profits for the full year will fall short of estimates, and after its chief executive officer resigned effective immediately.

Miners, the chemicals sector and homebuilders were all higher, with just one decliner in each sector, while the energy sector, media companies and the travel and leisure sector were all mostly higher, the real estate sector saw more gains and declines, and the utilities sector was mostly higher on analyst comments, upgrades and bids rumors.

The FTSE Eurofirst 300 was up 0.59 percent to 1,081.17 while the IBEX added 0.65 percent to 9,936.7, the Dax was 0.88 percent higher to 7,170.43 and the CAC-40 gained 1.46 percent to 9,936.7.

Asia-Pacific region equities markets were mostly higher on hopes that Greece will pass austerity measures that will allow them to continue to receive bailout aid, while a proposal from France would allow European banks and insurers to roll 70 percent of of the Greek bonds they hold, turning bonds coming due in the next three years into 30-year bonds, giving the debt-troubled nation longer to pay their debts.

The Nikkei 225 was up 0.74 percent to 9,648.98 in Tokyo, while the Topix index added 0.57 percent to 830.34 and the Mothers market gained 0.7 percent to 447.69 as department stores, consumer lenders and steelmakers all saw gains, while companies doing business with Europe were up on increased optimism that Greek debt problems will be solved.

Industrial robot manufacturer Fanuc (TYO: 6954), which gets 11 percent of its sales in Europe, was up 2.6 percent, while consumer electronics maker Sony (TYO: 6758), which gets 20 percent of its sales in Europe, was up 0.3 percent and video game maker Nintendo (TYO: 7974) was up 2.9 percent.

Other gainers in the region included the Shanghai Composite, which was up 0.04 percent to 2,759.2 while the Straits Times Index added 0.08 percent to 3,050.79 in Singapore, Hong Kong’s Hang Seng was 0.09 percent higher to 22,061.8, Australia’s markets advanced as the Sydney Ordinaries gained 0.21 percent to 4,523.2 and the S&P/ASX200 was up 0.28 percent to 4,474.3, but the Taiex was down 0.25 percent to 8,478.86 in Taiwan and South Korea’s Kospi dropped 0.36 percent to 2,062.91.

New York equities markets were higher on hopes that Greek debt problems will soon be sorted, with the Dow Jones Industrial Average up 0.94 percent in midday trade to 12,156.7, while the S&P 500 had added 0.95 percent to 1,292.21 and the Nasdaq Composite was 1.14 percent higher to 2,718.88.

Crude oil prices were up on an expected decline in inventories when data for last week is released on Wednesday, and on hopes that demand will rise, while metals prices were also higher as gold returned to just above $1,500 per troy ounce in New York trade.

Tags: , , , ,


Comments (0)

Trackback URL | Comments RSS Feed

There are no comments yet. Why not be the first to speak your mind.

Leave a Reply


Visited 1124 times, 3 so far today