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    September 22, 2005

    Oil sector gains balance earlier losses

    Filed under: Munich Re, Neste Oil, Volkswagen, Swiss Re, Zurich Financial, Axa

    In Europe on Friday the FTSE Eurofirst 300 closed at 1,207.44, a loss of 0.5 percent on the week.

    Gains in the oil sector helped the equities market not lose any more than it did by balancing declines in the insurance sector due to fears of a new round of claims expected from victims of Hurricane Rita.

    Despite a 2.7 percent decline on Friday due to a downgrade of Rita’s strength, Finnish oil refiner Neste Oil gained 11.5 percent for the week to end at €31.20. Neste reached a record high of €32.19 on Thursday.

    In the automobile manufacturing sector, Volkswagen gained 13.1 percent on the week to close at €51.86 on Friday after going as high as €52.53 earlier in the day. Volkswagen’s strength was due partly to positive comment by brokers and partly to rumors that US billionaire Kirk Kerkorian is building a stake in the company much as he has done in General Motors.

    In the insurance sector, Munich Re fell 2.5 percent over the week, mainly on rumors that it will soon issue a warning on profits. Elsewhere in the sector, Swiss Re dropped 2.5 percent to SFr81.25, Zurich Financial lost 2.4 percent to SFr217.70, and Axa fell 2.1 percent to €21.84.





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