MARKET REPORT - EUROPE

Milan MIBTEL 10,617 (+65)

ITALIAN stocks edged higher in lacklustre trading volumes yesterday, supported by firmer domestic bonds and a steady lira, while encouraged by the continued signs of firmness from oil and chemical giant ENI.

With most European centres, and the US closed for holiday, there was little overseas influences to drive the market higher, and it was the newly floated ENI which helped to lift the market, after a presentation to analysts on Friday.

Analysts said at the presentation, the group's managing director, Mr Franco Bernabe, said that the first quarter of 1996 had gone very well, without giving details of a breakdown of January March trading. The share closed up 2.57 per cent at 7,195 lire.

Telecoms were mixed, with STET running into profit taking after its run up on the confirmation of talks with Cable and Wireless and Veba. It closed off 0.29 per cent at 5,461 lire.

Frankfurt and Paris were both closed for the holiday.