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    September 27, 2005

    Oil and steel make gains during profit-taking

    Filed under: Bulgari, Christian Dior, Capitalia, Handelsbanken, Arcelor, Saltzgitter, Corus

    In Europe on Tuesday the FTSE Eurofirst 300 was down on profit-taking despite gains in the oil and steel sectors, losing 0.3 percent to 1,218.44.

    Also having an effect on European stocks was a comment by an official of the US Federal Reserve that hinted at the possibility of rising interest rates on a global scale on concerns about inflation.

    Sectors that depend on high consumer confidence were down on the day. Italian jeweller Bulgari lost 4.2 percent to €9.32 on an unexpected drop in first-half profits, which the company blamed on currency losses, taxes, and higher advertising costs.

    Also in the luxury goods sector, Christian Dior declined by 0.4 percent to €68.05 and LVMH dropped 0.6 percent to €68.20.

    The banking sector saw gains, however. Capitalia, the Italian bank, gained 4.3 percent to €4.54 on a “buy” rating from Citigroup, and Swedish bank Handelsbanken was up 3 percent to SKr173.50 on the announcement that it had appointed a new chief executive and that its former chief was moving to the office of chairman.

    In the steel sector, Arcelor, the world’s second-largest steel company, gained 0.8 percent to €18.85.

    Elsewhere in the sector, Saltzgitter of Germany was up 3.4 percent to €41.45 and Corus rose 1.4 percent on the day.





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