|
Bourses pause for breath
|
 |
December 22, 1998: 12:52 p.m. ET
European markets take time out Tuesday to digest Monday's surge
|
LONDON (CNNfn) - European markets appeared sapped of energy Tuesday after the unexpectedly strong run Monday took the wind from their sails.
With little impetus from across the Atlantic investors were content to see markets drift in directionless trading.
Frankfurt at least showed some strength, with the Xetra Dax index rising 1 percent, or 52.77 points, to close at 4,879.47. The Paris market also managed to stay in positive territory, although gains were more modest. The CAC 40 index rose 0.5 percent, or 17.06 points, to 3,820.47.
Shares headed lower in London, though. The FTSE 100 shed 33.2 points, or 0.6 percent, to close at 5,843.3. Zurich's SMI suffered the most from indigestion following Monday's share feast. The blue-chip index eased 1.1 percent, or 79 points, to 7,091.2.
Hotel and gaming operator Ladbroke (LADB) received what plaudits were handed out in London. The sale of the Coral bookmaking chain brought a better price than anticipated, boosting the shares 5 percent to 237 pence.
Once again there were mixed fortunes for the four newcomers that joined the FTSE 100 index this week.
Electrical retailer Dixons (DXNS) continued to storm ahead, rising 4 percent to 818 pence Tuesday.
The other new kids on the block weren't so lucky, however. Imperial Tobacco (IMT) tumbled more than 5 percent to 635 pence, fellow tobacco group Gallaher (GLH) eased 1 percent, and brick maker Hanson (HNS) slipped 3 percent to 469 pence.
Investors tired of the perennial merger speculation surrounding defense groups British Aerospace (BA.) and General Electric Company (GEC). GEC's announcement that it is splitting off its defense and aerospace activities had little effect on its share price. The stock retreated 4 percent to 539 pence after touching an all-time high Monday.
The downbeat mood among defense companies crossed the Channel into France. Thomson-CSF (PHO) continued to suffer the fallout from its profit warning Friday. The shares drooped another 8 percent to 212 francs Tuesday.
Speeding in the opposite direction is auto components group Valéo (PFR), which jumped 6 percent to 435 francs.
Tire maker Michelin (PML) suffered a puncture, dropping 4 percent to 230 francs.
Financial stocks made something of a comeback, after several days out of the limelight. Société Générale (PGLE) bounced 3 percent, as did BNP (PBNP).
Banks went in the other direction in Zurich. UBS eased 11 francs to 420 francs, while CS Group slipped 8 francs to 215 francs.
In Frankfurt a gleaming show from BMW (FBMW) again caught the eye. The shares rebounded another 20 marks to 1,209 marks, outpacing the rest of the auto sector. Insurers Allianz (FALV) and Munich Re (MUV3) continued to set a cracking pace. 
|
|
|
|
|
 |
|
