Madrid shares close higher lifted by Telefonica, constructors off UPDATE

Madrid shares close higher lifted by Telefonica, constructors off UPDATE

	Published : Sun, 14 Oct 2007 20:53 By : Agencies Print this Story

(Updates with full report)

MADRID (Thomson Financial) - Share prices closed near session highs, underpinned by a positive opening on Wall Street and as Telefonica continued to soar, while constructors saw some profit-taking.

The IBEX-35 index closed up 161.30 points at 15,261.30, after trading in a range of 14,991-15,264.

Equities opened lower, weighed down by losses overnight in the US and Asia, but the market moved into positive territory over the morning, led by Telefonica and late gains in Santander.

The IBEX-35 continued to climb steadily through the afternoon, underpinned by a positive opening on Wall Street after US data indicated that the North American economy remains strong and amid M&A news from Oracle Corp.

'It has been a fairly quiet session except for REE and Telefonica, where there was still good demand. The overall market seems fundamentally pretty good,' a trader at a leading European brokerage said.

Telefonica put on 0.87 eur, or 4.21 pct, to 21.54, on turnover of around 86 mln shares, buoyed by exuberant investor sentiment, with Citigroup raising its stance to 'buy' from 'hold' and its target price to 26.50 eur from 19.00.

Blue-chip banks were also firmly in the black, with Santander adding 0.10 to 13.82 and BBVA up 0.21 at 17.54.

Energy transport companies were in favour, with Enagas up 0.78, or 4.23 pct, at 19.20 and REE adding 2.95, or 7.99 pct, to 39.85, after a bullish investment outlook for the next decade.

Endesa put on 0.19 to 37.57, ahead of its re-entry into the IBEX-35 index on Oct 23.

Gas Natural fell 0.47 to 38.97. Earlier, Expansion reported that Spain energy sector regulator CNE plans to put the breaks on Suez increasing its stake in the Catalan utility until the French energy group's merger project with Gaz de France is clarified.

Constructors were among the main losers amid profit-taking after recent gains, with Sacyr off 0.29 at 28.00, also depressed by a report in Le Revenu that Eiffage has not had any talks with the Spanish builder over the sale of its 33 pct stake in the French group.

Ferrovial lost 1.25, or 2.00 pct, to 61.35, while its concessionaire unit Cintra fell 0.29, or 2.48 pct, to 11.39, after SocGen reinitiated coverage with a 'sell' and a 9.40 eur-per-share target price, citing substantial US exposure and high gearing.

ACS slipped 0.39 to 38.58 and FCC fell 1.40, or 2.29 pct, to 59.80.

Inditex fell 0.03 to 48.87, though off earlier lows after JP Morgan cut its stance to 'neutral' from 'overweight.'

Sogecable added 0.45 to 27.60, extending this week's gains amid hopes of an imminent end to the football war with Mediapro and ahead of third-quarter results due next week.

Among small caps, Vueling fell 2.44 ,or 12.74 pct, to 16.71, amid profit-taking from yesterday's stella rise.

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