950803

Italian shares

close a bit lower

MILAN: Italian shares close slightly lower reflecting an easier trend on other European stock exchanges and disappointing U.S. industrial orders data.

The all-share Mibtel index closed 0.2 percent lower at 10360 while the FIB30 futures index dropped 69 points to 15535. Trading volumes were around 770 billion lire, slightly down from Wednesday's 781 billion lire.

Banks attracted foreign and domestic investor interest with BCI rising 1.15 percent to 3,855 lire and Credito Italiano powering to 2,039 lire, a rise of 2.26 percent on the day.

"Investors were paying scant attention to domestic political developments with most commentators discounting approval of pensions reform legislation.

"The market's mood is still very positive even though there was no follow through after Wednesday's rise," one dealer said.

Stet shares finished 0.95 percent lower at 5,096 lire, as investors took profits after the announcement of a major global partnership with U.S. computer giant IBM. The stock had risen in previous sessions in advance of the announcement.

Italian bonds market strength continued to underpin the sharemarket with the spread against the German bund narrowing further to 513 basis points.

Credito Italiano was one the most heavily traded stocks with more than 22 million shares changing hands as both domestic and foreign investors piled in, attracted by the bank's bonds portfolio.

Montedison was also very active, with volume of 28.7 million shares, closing 0.37 percent lower at 1,064 lire. Olivetti continued to ease, dragged down by persistent talk of a capital increase.-Reuter