Milan, Frankfurt sluggish on day of public holidays

The markets in Amsterdam, Brussels, Copenhagen, Olso, Paris, Stockholm and Zurich were all closed for public holidays yesterday.

In Milan, another good day for the telecoms sector and action in insurer Ras failed to overcome broad weakness. The Mibtel index finished 152 easier at 31,908.

Ras jumped 4.9 per cent to €10.84 after CSFB upgraded its recommendation on the stock and raised its price target to €13.50 from €11.40.

Telecoms were in focus as Roberto Colaninno's Telecom Italia began a US roadshow with an analysts' meeting in New York. The shares turned back from a high of €15.49 to close just 0.1 per cent higher at €15.30.

Olivetti was heavily traded once again, rising 1.2 per cent to €4.17. Olivetti was the most active share on Friday, gaining ground on talk of someone buying up stock.

Frankfurt was little changed in basic trading hours on a day when most neighbouring markets were shut for Pentecost.

Technology stocks moved lower, with SAP down €17.4 at €502.40 and Siemens off €3.80 at €162.20. Epcos fell €4.85 to €136.35.

Deutsche Bank came off 89 cents to €86.41 following weekend press reports that the bank planned a wholesale clearance of bank branches, possibly up to 25 per cent of the group's total number.

Deutsche Telekom bounced back from the weakness shown on Friday, adding 31 cents to €66.30 amid reports that the latest sale of the government stake had been substantially subscribed.

Insurers were mixed. Allianz fell 65 cents to €370.35, while Munich Re gained €6.10 at €320.10.

Madrid fell due to investor caution ahead of a string of US economic statistics expected later this week and the domestic inflation data due today. The Ibex 35 index lost 0.8 per cent to 10,791.3.

Builder Acciona was up 3.9 per cent to €42.60 after it said it was reorganising its business units with a view to possible spin-offs. Holding company Corporacion Alba rose 2.3 per cent to €28.13. Both stand to benefit from the deal on control of mobile phone operator Airtel.

Helsinki ended mixed, with heavyweight Nokia pushing the index higher on thin turnover. The Hex general index rose 1.2 per cent to 17,084.67, its first close above 17,000 since June 5th. Nokia gained 1.7 per cent to €61.40, boosted by news of a $900 million deal with Turkish.