20/12/2004 13:21
Equity markets in Europe were higher in mid-morning trade on Monday, as drugs stocks shrugged off downgrades for AstraZeneca, and Euronext appeared to be entering the battle for London Stock Exchange.
The FTSE Eurofirst 300 was up 0.5 per cent to 1,037.66, while Frankfurt’s Xetra Dax added 0.7 per cent to 4,210.98. In Paris, the CAC-40 moved 0.5 per cent higher to 3,764,28 and London’s FTSE 100 climbed 0.6 per cent to 4,723.3.
Counter-bid news kept shares of London Stock Exchange in the spotlight, after it said it had been approached by Euronext, the operator of the Paris, Brussels and Amsterdam bourses. Euronext would not comment, but LSE said in a statement: “The approach is at an early stage... Discussions with Deutsche Börse and Euronext will continue.”
Shares in Euronext fell 2.6 per cent to €21.86, while those of Deutsche Börse shed 1.2 per cent to €43.70 as fears of a costly bidding war were ignited. Last week the German exchange operator offered 530p a share for LSE. On Monday, the shares added 3.3 per cent to 574.5p. See FT.com’s news in depth
Following the announcement of the failure in clinical trials of its lung cancer drug Iressa, AstraZeneca, the Anglo-Swedish group, received downgrades from UBS, JP Morgan and Credit Suisse First Boston. The stock however, after falling 8 per cent on Friday, was considered by investors to have gone low enough and they were net buyers, sending AstraZeneca up 0.3 per cent to £18.92.
Roche was up 1.3 per cent to SFr128.60 after it announced Avastin, its colon cancer drug, had been approved by Swiss authorities. Meanwhile, Paris-listed Sanofi-Aventis gained 2.1 per cent to €57.90 after reporting the US patent office had reissued a patent on its Lovenox anti-thrombosis drug.
Elsewhere in the sector, GlaxoSmithKline was up 1.3 per cent to £11.79, while Novartis added 1.2 per cent to SFr56.70.
Solvay, the Belgian chemicals and drugs group, was the Eurofirst 300’s biggest percentage gainer after it said it had made an offer for Sweden’s Neopharma. The company gained 5.7 per cent to €80.30.
Altadis, the Franco-Spanish tobacco company, was up 3.7 per cent to €32.79 on speculation Imperial Tobacco of the UK was preparing an offer of around £8bn (€11.67bn). This was a twist on last week’s rumours - denied by both companies - that Altadis was bidding for Imperial. Shares in Imperial were up 1 per cent to £13.83.
Nokia helped the mobile phone handet makers higher after Jorma Ollila, chief executive, defended his forecast that the market would see 10 per cent growth in 2005. Seperately on Monday, the company announced it had won a $70m networ deal in the Philippines.
Nokia shares added 1.2 per cent to €11.38, while Ericsson gained 1.9 per cent to SKr21.60.
Paper and packaging companies were higher after positive comment from Credit Suisse First Boston.
“Fundamentals remain strong in the European paper sector while share prices have given away some of the November gains in recent weeks,” said Lars Kjellberg at CSFB.
“We believe this is an opportunity to buy into the sector again. We rate the sector overweight and our favourites are Stora Enso, UPM-Kymmene and M-real all rated outperform with an upside around 30 per cent.”
Stora Enso was up 1.3 per cent to €11.48, while UPM-Kymmene added 1 per cent to €16.48. M-real however, fell 0.2 per cent to €4.46.
The FTSE Eurofirst 300 was up 0.5 per cent to 1,037.66, while Frankfurt’s Xetra Dax added 0.7 per cent to 4,210.98. In Paris, the CAC-40 moved 0.5 per cent higher to 3,764,28 and London’s FTSE 100 climbed 0.6 per cent to 4,723.3.
Counter-bid news kept shares of London Stock Exchange in the spotlight, after it said it had been approached by Euronext, the operator of the Paris, Brussels and Amsterdam bourses. Euronext would not comment, but LSE said in a statement: “The approach is at an early stage... Discussions with Deutsche Börse and Euronext will continue.”
Shares in Euronext fell 2.6 per cent to €21.86, while those of Deutsche Börse shed 1.2 per cent to €43.70 as fears of a costly bidding war were ignited. Last week the German exchange operator offered 530p a share for LSE. On Monday, the shares added 3.3 per cent to 574.5p. See FT.com’s news in depth
Following the announcement of the failure in clinical trials of its lung cancer drug Iressa, AstraZeneca, the Anglo-Swedish group, received downgrades from UBS, JP Morgan and Credit Suisse First Boston. The stock however, after falling 8 per cent on Friday, was considered by investors to have gone low enough and they were net buyers, sending AstraZeneca up 0.3 per cent to £18.92.
Roche was up 1.3 per cent to SFr128.60 after it announced Avastin, its colon cancer drug, had been approved by Swiss authorities. Meanwhile, Paris-listed Sanofi-Aventis gained 2.1 per cent to €57.90 after reporting the US patent office had reissued a patent on its Lovenox anti-thrombosis drug.
Elsewhere in the sector, GlaxoSmithKline was up 1.3 per cent to £11.79, while Novartis added 1.2 per cent to SFr56.70.
Solvay, the Belgian chemicals and drugs group, was the Eurofirst 300’s biggest percentage gainer after it said it had made an offer for Sweden’s Neopharma. The company gained 5.7 per cent to €80.30.
Altadis, the Franco-Spanish tobacco company, was up 3.7 per cent to €32.79 on speculation Imperial Tobacco of the UK was preparing an offer of around £8bn (€11.67bn). This was a twist on last week’s rumours - denied by both companies - that Altadis was bidding for Imperial. Shares in Imperial were up 1 per cent to £13.83.
Nokia helped the mobile phone handet makers higher after Jorma Ollila, chief executive, defended his forecast that the market would see 10 per cent growth in 2005. Seperately on Monday, the company announced it had won a $70m networ deal in the Philippines.
Nokia shares added 1.2 per cent to €11.38, while Ericsson gained 1.9 per cent to SKr21.60.
Paper and packaging companies were higher after positive comment from Credit Suisse First Boston.
“Fundamentals remain strong in the European paper sector while share prices have given away some of the November gains in recent weeks,” said Lars Kjellberg at CSFB.
“We believe this is an opportunity to buy into the sector again. We rate the sector overweight and our favourites are Stora Enso, UPM-Kymmene and M-real all rated outperform with an upside around 30 per cent.”
Stora Enso was up 1.3 per cent to €11.48, while UPM-Kymmene added 1 per cent to €16.48. M-real however, fell 0.2 per cent to €4.46.
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