Brussels shares close flat; Agfa-Gevaert up, Dexia down UPDATE

Brussels shares close flat; Agfa-Gevaert up, Dexia down UPDATE

	Published : Fri, 26 Oct 2007 16:48 By : Agencies Print this Story

(Updates with full report)

BRUSSELS (Thomson Financial) - Shares closed flat with imaging technology company Agfa-Gevaert leading the gainers and financial services group Dexia the sharpest faller.

At the close, the Bel 20 was up 5.52 points or 0.13 pct at 4,399.21.

Agfa-Gevaert climbed 0.30 eur or 3.28 pct to 9.45, followed by speciality materials group Umicore, up 3.31 eur or 1.91 pct at 176.58.

Cofinimmo closed up 2.31 eur or 1.82 pct at 128.90. The company posted nine-month results after the market close which showed net profit up to 126.1 mln eur from 86.6 mln last year. It also upped its full-year dividend forecast by 4 pct to 7.75 eur.

Dexia was the chief faller, down 0.53 eur or 2.45 pct at 21.13, with analysts and traders saying the stock is suffering from general negative sentiment in the banking sector on the back of the ongoing sub-prime crisis.

Ton Gietman, analyst at Petercam with an 'add' rating and 20.98 eur target price, said in a note to clients that the fall is 'most likely in sympathy with the fall in share prices of MBIA and Ambac, two competitors of Dexia's US subsidiary FSA'.

He added: 'We think that the share price reaction is overdone. The price fall creates again a buying opportunity, albeit that we think that all the companies, including Dexia, with a sub-prime related exposure will continue to trade in a rather volatile fashion in the months to come.'

Financial peers KBC and Fortis performed better, climbing 0.93 eur or 1.00 pct to 93.64, and 0.20 eur or 0.91 pct to 22.17, respectively.

Utility group Suez closed 0.46 eur or 1.03 pct higher at 45.00, while brewer InBev gained 0.48 eur or 0.74 pct at 128.90.

Steel cord and wire manufacturer Bekaert was 2.11 eur or 2.16 pct lighter at 95.58.

Chemicals and pharmaceuticals group Solvay dropped 1.78 eur or 1.70 pct to 103.20. Earlier, the group posted third-quarter results which beat expectations, with net profit rising to 218 mln eur from 181 mln last year.

Chief executive Christian Jourquin said in a conference call that last year's 'excellent' operating results are achievable in 2007.

'I can confirm we can achieve the excellent operating results of last year,' he added.

He said this would be achievable if global macroeconomic conditions, energy costs and the euro-dollar exchange rate remain the same.

He added that there would be 'no slowdown' on the group's main products. Pharmaceuticals peer UCB rose 0.21 eur or 0.52 pct to 40.51. Earlier, the company said the third phase clinical trials of its anti-epileptic drug in development, brivaracetam, are underway.

Telecoms operator Mobistar fell 0.33 eur or 0.52 pct to 62.60. The group announced the departure of chief executive Bernard Moscheni and the appointment of chief financial officer Werner De Laet as interim replacement.

Outside the Bel 20, biotech group ThromboGenics fell 0.25 eur or 2.84 pct to 8.55, semiconductors maker Melexis dropped 0.28 eur or 2.45 pct to 11.14, and EVS Broadcast Systems fell 2.03 eur or 2.72 pct to 72.50.

IT components manufacturer Option fell back after intraday rallies of over 7 pct to close up 0.11 eur or 1.77 pct at 6.33.

CMB climbed 1.41 eur or 2.28 pct to 63.17. The shipping group posted a rise in nine-months net profit last night and hinted at elevated performance to come.

Wouter Vanderhaeghen, analyst at KBC Securities, said there is a 'glimpse of bonanza in the third quarter results'.

Peer Exmar fell 0.46 eur or 2.09 pct to 21.54. Last night, the company said its nine-month net profit fell to 22.0 mln usd from 74.4 mln last year.

Investment fund GIMV fell 0.61 eur or 1.28 pct to 47.14. Earlier, it said it has launched leveraged buy-out (LBO) activities in France by signing a partnership deal with French Pragma Capital.

Under the agreement, GIMV said it will invest 40 mln in the Pragma II buy-out fund.

phil.mccomish@thomson.com

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