Madrid shares close higher as banks rebound; renewables under pressure UPDATE

Madrid shares close higher as banks rebound; renewables under pressure UPDATE

	Published : Tue, 13 Nov 2007 18:03 By : Agencies Print this Story

(Updates with full report)

MADRID (Thomson Financial) - Share prices closed slightly higher after a positive start on Wall Street, with banks higher across the board on a rebound, but while renewables remained under pressure.

The IBEX-35 index closed up 40.10 points at 15,814.80, after trading in a range of 15,634-15,824.

Equities opened lower, depressed by Wall Street's overnight slide into negative territory at the close, but pared losses over the morning thanks to a rebound in selected domestically-focused banks.

Steady early gains on Wall Street drove the IBEX-35 into the black by late afternoon.

Gamesa dropped 1.56 eur or 4.56 pct to 33.10, tracking peer Vestas after Nordex's concerns about the outlook for its business and on a report that tax breaks for renewables in the US could be eliminated.

Iberdrola lost 0.17 to 11.55.

Solaria plummeted 2.44 or 11.12 pct to 19.56, also on concerns for the sector outlook and after core shareholder Solaria DTL divested 10 pct of the company from its 75.5 pct stake and amid concerns of further disposals.

Acciona also underperformed after reporting weak nine months to September results, dropping 4.95 or 2.18 pct to 222.05, and ahead of a conference call at 6.00 pm.

Other builders were in high demand, with Ferrovial putting on 3.75 or 6.41 pct to 62.25 on fresh stake building news by chairman Rafael del Pino, after analysts said he invested 13.9 mln for a further 0.168% stake, at an average price of close to 59 eur/share.

Sacyr rose 0.49 to 29.72 ahead of reporting third-quarter results tomorrow at noon, and FCC added 0.60 to 58.75.

Banks were higher across the board on a rebound, with Santander up 0.04 at 14.85, BBVA 0.16 higher at 16.69, Popular rising 0.30 to 12.03, Bankinter up 0.34 or 10.44, and Sabadell up 0.16 at 7.06.

Telefonica put on 0.50 or 2.21 pct to 23.09.

Meanwhile, Vueling soared 1.40 or 8.89 pct to 17.15 amid hopes for improved management, following the resignation by chairwoman Barbara Cassani, who will be replaced by Josep Pique.

tfn.europemadrid@thomson.com

ccs/ccs/rw

The copying, republication or redistribution of Thomson Financial News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Financial News.