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    March 3, 2006

    Economic news sends Eurofirst lower

    Filed under: Saipem, Eon, Suez, Gaz de France, Deutsche Telekom, Accor, Metrovacesa, Fortis

    Mixed economic data out of the United States and a hike in interest rates in the eurozone sent the FTSE Eurofirst 300 down by 0.1 percent on Friday and 0.2 percent lower on the week to close at 1,342.43 on Friday. The decline came after the index reached a four and a half year high on Monday, as the negative news overcame news of mergers and acquisitions activity and some positive corporate earnings reports.

    Among the gainers during the week were Deutsche Telekom, which had a better than expected fourth-quarter report that sent shares up 1.9 percent during the week to €13.64. Oil field services company Saipem also had a good earnings report as well as a positive outlook statement for 2006, sending its shares up 15 percent on the week to €18.59.

    Accor gained on the week on the news that it is thinking about selling its portion of the travel agency Carlson Wagonlit in order to concentrate on its hotel business, with shares up 3.5 percent to €51.45. Property company Metrovacesa was up 20.1 percent to €73 after its rival, Sacresa, made a bid for the company.

    Belgian financial services provider Fortis dropped 4.4 percent during the week to €29.12 after it had to release its full-year headline results after a briefcase holding a draft of its report was stolen.

    Utility Suez lost 7.9 percent on the week to €31.20 after analysts issued a negative assessment of the terms of its merger with Gaz de France, which lost 4.1 percent during the week to €70.25. Elsewhere in the utilities sector, Germany’s Eon was down 4.8 percent on the week to €90.23 after legislation made it less likely that its bid for Endsea of Spain would succeed.





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