Business World

Sunday 15 September 2019

Unicredit helps boost Europe's bourses

Traders work on floor of the New York Stock Exchange (NYSE) shortly before the close of trading
Traders work on floor of the New York Stock Exchange (NYSE) shortly before the close of trading

Reuters

European shares rose yesterday, helped by a rally at Italy's biggest bank UniCredit in response to plans to bolster its balance sheet, while takeover speculation allowed Mediaset to make its best-ever one-day gain.

Mediaset surged 31.9pc - the biggest gainer in Europe - after French media group Vivendi said it owned a 3pc stake in the Italian broadcaster and planned to raise that to as much as 20pc, fuelling expectations of a takeover bid.

The pan-European STOXX 600 index climbed to a new 11-month high to end the session 1.1pc higher.UniCredit rose 15.9pc, its best day in more than six years, after unveiling plans to raise €13bn in Italy's biggest-ever share issue to shore up its balance sheet and shield itself from a broader banking crisis.

In Ireland, the ISEQ Overall Index ended the day just 0.3pc higher at 6,412.96.

Green REIT was 3pc higher at €1.33 after sealing a deal to buy Starwood out of the Windmill Lane development partnership in Dublin. Dairy group Glanbia was 2.7pc higher at €15.86.

The UK's FTSE-100 jumped 1.1pc.

Germany's DAX was 0.8pc higher and France's CAC-40 was up 0.9pc.

The FTSE's close was the highest since October, buoyed by gains for television and telecoms stocks.

Shares in broadcaster ITV rose 3.7pc, with one trader saying the Fox bid for Sky made other mergers and acquisitions in the sector more likely.

"ITV is... higher on the back of speculation that it may become the subject of a bid in the wake of 21st Century Fox's bid for Sky," said Michael Hewson, chief market analyst at CMC Markets. Shares in BT, which increasingly competes with Sky in internet provision and televised football, ended the session 3.7pc higher.

Irish Independent

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