Banks to the rescue

13th December 2007, Comments 0 comments

13 December 2007, MADRID - The Spanish stock market yesterday missed out on the gains posted by other major European bourses but at least closed well off its intraday lows after the US Federal Reserve and other central banks announced coordinated action to relieve the credit crunch sparked by the US subprime mortgage crisis.

13 December 2007

MADRID - The Spanish stock market yesterday missed out on the gains posted by other major European bourses but at least closed well off its intraday lows after the US Federal Reserve and other central banks announced coordinated action to relieve the credit crunch sparked by the US subprime mortgage crisis.

The European Central Bank as well as other central banks will be joining the Fed in setting up a temporary lending facility to "address elevated pressures in short-term funding markets."

The Spanish blue chip Ibex closed down 0.19 percent at 15,860.00 points, well off an intraday low of 15,679.20 points. The high for the session was 15,983.40 points. The Madrid general index dropped 0.20 percent to 1,717.61 points. Open-market deals in the continuous market amounted to EUR 4.7 billion.

In the rest of Europe, London added 0.35 percent, Frankfurt was 0.83 percent to the good, while Paris advanced 0.32 percent.

One of the main reasons the Ibex 35 remained in the red was Inditex. Spain's leading fashion retailer reported a 30-percent increase in its net profit in the nine months to October, but investors latched onto low growth in its like-for-like sales in the third quarter. The stock closed down 5.13 percent at EUR 47.20, more than wiping out the healthy gains it posted in the previous session.

Iberdrola closed up 0.09 percent after setting the IPO price of its renewable energy division at the bottom of the range it gave in the prospectus for the issue. Iberia shed 1.88 percent after IATA cut its profit forecasts for the airline industry for next year.

Grifols added 3.34 percent and Abengoa 6.42 percent after the Ibex 35 technical committee's decision to include them in the blue-chip index from next year.

[Copyright EL PAÍS, SL./ Adrián Soto 2007]

Subject: Spanish news

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