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    August 15, 2007

    Commerzbank gains as other European banks decline

    Filed under: Other, UBS, Deutsche Bank, Axa, Allianz, BNP Paribas, Societe Generale, Commerzbank, Air France-KLM, France Telecom, Deutsche Borse, Lufthansa, Bayer, Cap Gemini

    Europe’s equities markets were mostly lower on Wednesday.

    The exception was Frankfurt’s Dax, which added 0.28 percent to 7,445.9.

    The FTSE Eurofirst 300 fell 0.08 percent to 1,493.42.

    In Madrid, the IBEX dropped 0.18 percent to 14,527.6, while the Paris CAC-40 was 0.66 percent lower to 5,442.72.

    Banks were mostly lower, again the exception coming in Germany where Commerzbank (FWB: CBK) added 0.47 percent to €29.67. UBS (SWX: USBN; NYSE: UBS; TYO: 8657) dropped 0.4 percent to SFr63.25 after Deutsche Bank (FWB: DBK; NYSE: DB) cut the Swiss bank’s target share price from SFr90 to SFr80 but reconfirmed its “buy” recommendation.

    Deutsche Bank, in turn, had its recommendation cut from “buy” to “neutral” by Merrill Lynch (NYSE: MER; TYO: 8675), sending the German bank 1 percent lower to €93.43.

    Among French banks BNP Paribas (Euronext: BNP; TYO: 8665) fell 1.45 percent to €77.05, while Societe Generale (Euronext: GLE) was down 2.29 percent to €116.27.

    Insurers also saw declines.

    Allianz (FWB: ALV; NYSE: AZ) dropped 1 percent to €154.23, while AXA (Euronext: CS; NYSE: AXA) was 1.2 percent lower to €28.49 after Credit Suisse (SWX: SCGN; NYSE: CS) cut its recommendation from “outperform” to “neutral”.

    The best performance on the Dax came from drug and chemicals group Bayer (FWB: BAY; NYSE: BAY; TYO: 4863), which added 5.49 percent to €55.07 on the possibility that Novartis (NYSE: NVS) might offer for the company.

    Officials of both Bayer and Novartis declined to comment on the rumors.

    Stock exchange operator Deutsche Boerse (FWB: DB1) had the worst day on the Dax as it dropped 2.66 percent to €80.54.

    IT group Cap Gemini (Euronext: CAP) had the best day on the CAC-40, adding 4.04 percent to €45.63, while the worst performer on the 40 was Air France (Euronext: AF; NSYE: AKH) with a 2.74 percent decline to €28.70.

    On the other hand, Lufthansa (FWB: LHA) gained 1.56 percent to €20.21.

    France Telecom (Euronext: FTE; NYSE: FTE) added 1.26 percent to €20.90 on rumors that it has won the license to sell Apple’s (NAS: AAPL; LSE: ACP; FWB: APC) iPhone in France.





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