AGL 40.00 No Change ▼ 0.00 (0%)
AIRLINK 132.66 Increased By ▲ 3.13 (2.42%)
BOP 6.89 Increased By ▲ 0.21 (3.14%)
CNERGY 4.57 Decreased By ▼ -0.06 (-1.3%)
DCL 8.92 Decreased By ▼ -0.02 (-0.22%)
DFML 42.75 Increased By ▲ 1.06 (2.54%)
DGKC 84.00 Increased By ▲ 0.23 (0.27%)
FCCL 32.90 Increased By ▲ 0.13 (0.4%)
FFBL 77.06 Increased By ▲ 1.59 (2.11%)
FFL 12.20 Increased By ▲ 0.73 (6.36%)
HUBC 110.01 Decreased By ▼ -0.54 (-0.49%)
HUMNL 14.40 Decreased By ▼ -0.16 (-1.1%)
KEL 5.53 Increased By ▲ 0.14 (2.6%)
KOSM 8.32 Decreased By ▼ -0.08 (-0.95%)
MLCF 39.67 Decreased By ▼ -0.12 (-0.3%)
NBP 65.50 Increased By ▲ 5.21 (8.64%)
OGDC 198.74 Decreased By ▼ -0.92 (-0.46%)
PAEL 26.00 Decreased By ▼ -0.65 (-2.44%)
PIBTL 7.62 Decreased By ▼ -0.04 (-0.52%)
PPL 159.00 Increased By ▲ 1.08 (0.68%)
PRL 26.24 Decreased By ▼ -0.49 (-1.83%)
PTC 18.35 Decreased By ▼ -0.11 (-0.6%)
SEARL 82.24 Decreased By ▼ -0.20 (-0.24%)
TELE 8.12 Decreased By ▼ -0.19 (-2.29%)
TOMCL 34.40 Decreased By ▼ -0.11 (-0.32%)
TPLP 8.98 Decreased By ▼ -0.08 (-0.88%)
TREET 16.88 Decreased By ▼ -0.59 (-3.38%)
TRG 59.49 Decreased By ▼ -1.83 (-2.98%)
UNITY 27.52 Increased By ▲ 0.09 (0.33%)
WTL 1.40 Increased By ▲ 0.02 (1.45%)
BR100 10,614 Increased By 206.9 (1.99%)
BR30 31,874 Increased By 160.5 (0.51%)
KSE100 98,972 Increased By 1644 (1.69%)
KSE30 30,784 Increased By 591.7 (1.96%)
Markets

Dealmaking edges European stocks higher as long lockdown looms

  • Its stock led gains in Paris' CAC 40, while shares in French rival Casino rose 3.9pc.
Published January 14, 2021

European stocks closed slightly higher on Wednesday, with deal-related gains in French grocer Carrefour and Spain's Telefonica offsetting wider concerns about extended COVID-19 lockdowns.

Carrefour shares rose 13.4pc to their highest level since August 2019 after a surprise 16.2 billion euros ($19.72 billion) takeover approach from Canadian convenience-store operator Alimentation Couche-Tard.

Its stock led gains in Paris' CAC 40, while shares in French rival Casino rose 3.9pc.

Telefonica jumped 9.7pc after it agreed to sell its mobile phone masts in Europe and Latin America to U.S.-based telecom infrastructure operator American Towers for 7.7 billion euros ($9.4 billion).

While deal activity drove swings in regional markets and sectors, the pan-European STOXX 600 index rose just 0.1pc as investors paused after last week's strong rally.

Banks, travel companies and automakers fell the most on fears that prolonged restrictions in Europe to control soaring coronavirus cases will further slow a recovery in earnings and economic growth.

"We're not going to see restrictions being lifted anytime soon, so that's adding to fears of a decline in economic activity," said David Madden, analyst at CMC Markets.

"The longer the economies are under lockdown the more likely we're going to have loan defaults. That's impacting the banks."

Germany, Britain and the Netherlands indicated strict COVID-19 curbs would last into early February and Italy said it would extend its state of emergency to the end of April.

Investors also kept an eye on political developments in Rome after former Prime Minister Matteo Renzi threatened to pull his tiny centrist party out of the ruling coalition.

Italy's current premier Giuseppe Conte told reporters he was working on a new coalition pact to last until the end of the legislature.

Italy's FTSE MIB rose 0.4pc, while banking stocks fell 0.7pc.

JPMorgan cut its forecasts for Italy's economy, predicting that longer restrictions will result in no growth in the first quarter versus a previous forecast of 3.5pc growth.

Danish offshore wind farm developer Orsted fell 4.9pc after it said that a return to more normal wind speeds this year would hit operating earnings.

Just Eat Takeaway fell 4.1pc as disappointing 2020 margin guidance overshadowed a 57pc jump in fourth-quarter orders.

London Stock Exchange gained 1.8pc after EU antitrust regulators gave the green light for its $27 billion takeover of Refinitiv.

Siemens Gamesa and Siemens Energy rose 1.6pc and 4.2pc respectively after the companies said they were developing a commercial offshore wind turbine that produces hydrogen via electrolysis.

Comments

Comments are closed.