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Italian equities

finish lower

MILAN: Italian shares closed lower across-the-board as arbitragers spotted weakness in the FIB30 stock index futures contract and dumped the underlying stocks.

"For the second day running a fall in the FIB30 contract brought down the whole market," said a Milan broker. "The September contract closes on September 15 and some investors have also been closing their positions," he added.

The all-share Mibtel index finished 0.51 percent down at 10,417 while the MIb30 blue-chip index dropped 0.48 percent to close at 15,440. The FIB30 shed 42 points to end at 15,455.

Shares had opened weak as traders awaited the Bundesbank's council meeting. The cut in the Lombard rate, when it came, breathed life into the market which picked up strongly but soon ran out of steam.

As soon as the market lifted its head it found people ready to sell," on analyst siad.

Dealers noted some evidence of short-covering towards the end of the session which lifted shares off the day's lows.

A mood of cautiousness has tempered the summer optimism which has gripped the market in recent weeks, as investors now wait for the government to unveil its 1996 budget plans.

Telecome Italia Mobile (TIM.MI) was among the few stocks spread, gaining 1.31 percent to finish at 2,315 lire. TIM has been a market favourite in recent weeks as investors build up their portfolios attracted by the growth potential for mobile telephony.-Reuter