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Italian equities

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MILAN: Italian shares were marked down across the board in a sharp bout of profit-taking as investors bailed out after a Monday's steep climb fuelled by promising inflation figures from the port city of Genoa.

The all-share Mibtel index ended 1.3 percent lower at 1,0549 while the blue chip Mib30 index took a bigger fall, ending 1.54 percent down at 15, 651.

All leading stocks declined with the sole exception of Olivetti (OLIV.MI), which rose 0.44 percent to 1,612 lire and Credito Romagnolo (CROI.MI), up 0.06 percent at 12,000 lire.

"The market has come back into equilibrium after the inflation figures were released," said a Milan stockbroker. "Shares shot up on the figure from Genoa and came back down when today's data was announced."

The announcement of nationwide August inflation of 5.7 percent, slightly above consensus forecasts, took the edge off a mood of euphoria that swirled through the market when Genoa said consumer prices rose 5.5 percent in the city.

"This is a correction which may be good for the market," another analysts said, adding that he believed sentiment was still bullish.

The analyst predicted buying interest would soon return and was likely to focus on the telecommunications sector, selected insurance stocks, banks led by BCI (BCMI.MI) and Fiat.

The September FIB30 closed 281 points lower at 15,640 with volumes lifted by hedging activity by Italian funds. Futures traders identified a strong resistence line at 16,000.

Foreign buyers were conspicuous by their absence. "The foreigners are watching and waiting," one broker said.-Reuter