Milan shares close higher, Telecom Italia outperforms on buoyant sector UPDATE

Milan shares close higher, Telecom Italia outperforms on buoyant sector UPDATE

	Published : Thu, 11 Oct 2007 17:13 By : Agencies Print this Story

(Updating with data on single stocks)

MILAN (Thomson Financial) - Share prices closed higher in good volumes supported by a positive start on Wall Street, with Telecom Italia posting solid gains on the back of a buoyant European telecoms sector.

The Mibtel index was up 0.39 pct at 31,966 and the S&P/Mib rose 0.27 pct to 41,024.

Volume traded was an estimated 6.854 bln eur.

Telecom Italia rose 2.66 pct to 2.12 eur on positive sentiment following Telefonica's investor day. Telefonica chairman Cesar Alierta said he expects the sale of the 18 pct stake in Telecom Italia held by Pirelli & C and Benetton to the Telco consortium to be completed on schedule. He said approval from Brazil's regulator Anatel is expected before the end of the month and then Telco, in which Telefonica has a key stake, will be able to complete the deal.

Pirelli rose 1.65 pct to 0.85 eur.

Luxottica was up 2.49 pct at 26.34 eur still benefitting from the Citigroup upgrade to 'buy' of two days ago.

Lottomatica rose 2.94 pct at 27.7 eur.

Saipem rose 2.12 pct to 30.35 eur after the award of a new pipeline construction contract to its engineering unit Snamprogetti.

A firm oil price supported Eni, which rose 1.15 pct to 26.4 eur, helped also by news it has acquired 26 new exploration blocks in the continental shelf and deep waters of the Gulf of Mexico for 47.8 mln usd.

Fiat was up 0.93 pct at 22.69 eur, boosted by a strong European car sector. The Fiat CEO said today full-year guidance might be raised and that at least one alliance in the auto sector will be concluded before the end of the year.

UniCredit underperformed the market, falling 1.32 pct to 6.2 eur. A dealer said rumours were going round that a programme to be aired on Italian TV Sunday about Italian banks and derivative exposure could shed negative light on UniCredit. About 5 pct of UniCredit's total revenues come from derivative business, a UniCredit spokesman said.

Financial stocks were generally weaker with Mediolanum down 0.70 pct at 5.37 eur, UBI Banca down 0.42 pct at 19.07, Intesa Sanpaolo down 0.41 pct at 5.51 and BMPS down 0.19 pct at 4.49.

stephen.jewkes@thomson.com

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