Another slide in oil prices, on expectations that OPEC producers meeting in Vienna would hold supplies at current levels, gave a further boost to the chemicals sector and leading European oil companies.
The chemicals sector moved higher for a second consecutive day because lower oil prices will mean lower input costs. Germany's BASF put on 4.6 per cent to €36.82 while Bayer was 1.2 per cent ahead at €29.10, giving impetus to the Frankfurt market.
Switzerland's Ciba jumped another 4.3 per cent to SFr91.
But Clariant gave ground, after Tuesday's 14 per cent surge, losing 4.1 per cent to SFr23.50. Schroder Salomon Smith Barney has cut its share price target on the stock to SFr24 from SFr40 saying Clariant had suffered in the aftermath of the attacks on the US over and above its peers because of the strength of the Swiss franc and because of its balance sheet weakness. SSSB downgraded its earnings estimates by 42 per cent for 2002 and said it did not expect 2000 earnings levels to be regained until 2005.
Oil stocks made some progress in spite of falling crude prices - US crude oil futures dropped below $21 a barrel yesterday for the first time in two years. But Total Fina Elf, which plunged nearly 20 per cent in the aftermath of September 11th, was up 4 per cent yesterday to €139.40, while Repsol gained 0.8 per cent to €14.96 and Royal Dutch was up 1.2 per cent to €50.74.
Some stocks rallied in the technology sector, led by Siemens, which shed earlier healthy gains as Wall Street turned negative but was still 4.4 per cent higher at €41.97 in late trade. Philips went up 2.6 per cent to €20.52 and SAP was up 2.6 per cent to €110.18.
But Nokia fell 6 per cent to €17.58. Morgan Stanley cut its forecast for earnings per share in 2002 from 0.75 to 0.72. It said: "The stock may well have appeal over the next six months or so. But based on our new five-year modelling, it is difficult to make Nokia look attractive." Morgan Stanley rates Nokia "neutral".
