Madrid shares close slightly lower led by Iberia, Inditex slides UPDATE

Madrid shares close slightly lower led by Iberia, Inditex slides UPDATE

	Published : Wed, 21 Mar 2007 18:41 By : Agencies Print this Story

Updates with full report

MADRID (AFX) - Share prices closed slightly lower, with Iberia outperforming on fresh sector consolidation talk, while Inditex was one of today's main losers on disappointing dividend news and a lacklustre outlook, dealers said.

The IBEX-35 index closed down 12.7 points at 14,310.5, after trading in a range of 14,275-14,385, on turnover of 5.6 bln eur.

Equities opened slightly higher but quickly dropped into negative territory as selected blue chips saw some profit-taking over the morning, with investors cautious ahead of the outcome of the US Fed meeting.

The market pared some of its losses to the close, but still underperformed most of the European bourses.

Inditex was one of today's main losers, down 1.46 eur or 3.21 pct to 44.08, after a broadly in-line set of full-year to January results and a lacklustre conference call, which failed to provide the expected improved guidance to the retailer's cost efficiency plan. Fortis Bank also highlighted a lower-than- expected dividend included in the earnings report.

The other main protagonist today was Iberia, which closed up 0.12 or 3.35 pct at 3.70, off a high of 3.80, on fresh bid talk, once again with Lufthansa in the frame.

The main blue chips were mixed, with Telefonica up 0.05 at 16.24, after an upgrade at Merrill Lynch to 'buy' from 'neutral,' while BBVA put on 0.08 to 18.16. Peer SCH fell 0.11 to 13.36, while Endesa was flat at 38.65 and Repsol YPF was off 0.17 at 23.92.

Abengoa was one of today's main second line gainers, up 1.90 or 6.44 pct at 31.40, while fellow renewables company Gamesa put on 0.26 to 24.55, extending yesterday's gains. Avanzit rose 0.14 to 7.00.

Duro Felguera rose 0.02 to 8.26.

Cintra had put on 0.05 to 13.52, after providing an update on its 2007-2008 pipeline, while Altadis closed up 0.10 at 47.10, as investors await further news from Imperial Tobacco about its bid interest. A source close to the matter said Altadis board is unlikely to recommend an offer from the UK group below 53 eur per share. This compares with Imperial's 45 eur per share already rejected bid.

Constructors were mixed, with ACS recovering from initial losses to add 0.05 to 44.10. Earlier, the builder said it has acquired a 25.08 pct stake in Hochtief AG for 1.264 bln eur. Ferrovial was flat at 74.35 and FCC lost 0.55 to 75.05.

Abertis put on 0.27 to 23.26, on recent stake building news.

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