Milan shares close higher, led by cements, oil UPDATE

Milan shares close higher, led by cements, oil UPDATE

	Published : Mon, 26 Feb 2007 18:29 By : Agencies Print this Story

(Updates with full report)

MILAN (AFX) - Share prices closed higher, supported by the international trend in equity prices, and led by cement stocks on the warm weather and oils on the higher crude price, brokers said.

The Mibtel index closed up 0.76 pct at 33,234 and the S&P/Mib was up 0.82 pct at 42,849.

Volume was an estimated 4.544 bln eur.

Brokers said the underlying trend for equities remains positive, with a mix of long-term buyers and more speculative traders in the market.

Volumes are not particularly high, and there continues to be rotation between sectors, they said.

In the cement sector, Buzzi Unicem was up 3.08 pct at 23.75 eur after broker recommendations. Brokers said the recent trend in energy prices was one factor while warm weather has boosted the construction sector.

Cementir was up 3.59 pct at 9.07. Italcementi eased 0.17 pct to 23.94.

In the oil sector, Eni rose 1.94 pct to 24.21. The company's strategy presentation Friday received a mixed reaction. Lehman raised its rating to 'neutral', from 'sell'.

One international broker said he continues to have worries on Eni's Kashagan field in Kazakhstan, where the cost keeps rising and the start date keeps being postponed.

Saipem fell 0.78 pct to 21.60 after recent gains.

Fiat was another firm gainer, up 2.33 pct at 18.66, boosted by speculation it will soon spin off its Fiat Auto unit. The company said this project is not on its agenda, reiterating Jan comments.

Finmeccanica added 0.48 pct to 23.10 ahead of Thursday's results. Analysts said they see solid gains in operating profits, while there is some uncertainty how net will be affected by restructuring.

Among financials, Capitalia was the leading losers, down 1.01 pct at 6.79. Lehman cut its target price to 6.75 eur, from 6.90, rating the stock 'underperform' after Friday's results.

BMPS lost 0.49 pct to 5.025. Reports said it has narrowed down the choice of an international insurance partner to just two candidates, Axa and Aegon.

Fondiaria-SAI rose 2.35 pct to 36.55 ahead of premium data this week.

Telecom Italia fell 0.57 pct to 2.3675. Its main shareholder Pirelli lost 0.59 pct to 0.8875.

nigel.tutt@thomson.com

nt/lam

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