Better day for the banks

28th November 2007, Comments 0 comments

28 November 2007, Madrid - The Spanish stock market closed slightly lower yesterday after recovering most of its earlier loss on what was a better day for the banks amid rumors of merger and acquisition activity.

28 November 2007

Madrid - The Spanish stock market closed slightly lower yesterday after recovering most of its earlier loss on what was a better day for the banks amid rumors of merger and acquisition activity.

News that beleaguered US bank Citigroup is to receive a $7.5 billion cash injection from the Abu Dhabi investment authority helped dispel some of the US subprime fallout concerns.

Countering this was the announcement that inflation in Germany hit 3.3 percent, its highest level since 1994. Inflation in Spain is also forecast to come in at 4 percent this month, which appeared to rule out any chance of an interest-rate cut by the ECB.

The Ibex 35 shed 0.10 percent to 15,315.60 points after trading in a range of 15,165-15,346. The Madrid general index dropped 0.09 percent to 1,660.39 points. Open-market deals in the continuous market amounted to about €4.5 billion. In the rest of Europe, Frankfurt shed 0.48 percent, Paris dropped 0.44 percent, while London was down 0.64 percent.

Iberia closed down 2.87 percent as hopes of a takeover bid all but evaporated after BA and TPG withdrew their bid interest in the airline. Caja Madrid also said it did not plan to increase its holding beyond 23 percent.

Sabadell added 4.87 percent following rumors - subsequently denied - that the Indian-born businessman Ramchand Bhavnani was eyeing the bank after selling out his holding in Bankinter to Crédit Agricole. Bankinter in turn was up 3.62 percent.

Market leaders Telefónica and Banco Santander gained 0.59 percent and 0.14 percent respectively. Plastic-surgery firm Dermoestética put on 5.26 percent to €8.40 after a report private equity firm 3i is considering a takeover bid at €
10 per share.

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

Subject: Spanish news

 

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