950804

Italian shares

close in flurry

of activity

MILAN: Italian shares ended slightly higher after a flurry of activity in the afternoon enlivened an otherwise subdued session. Volume down from previous sessions at 500 billion lire compared with Thursday turnover of 787 billion.

*A strong bonds market performance, which saw the September Liffe contract close at 103.29 with a gain on the day of 69 bps, also helped underpin the bourse.

*The all-share Mibtel index finished 0.76 percent higher at 15531 while the blue-chip Mib30 index gained 0.76 percent to close at 15531.

*US non-farm payroll data were also well received.

*Strong performance in the bonds market continued to lift banking stocks which are seen as the big beneficiaries of the rally, attracting investors from home and abroad.

*Credito Italiano climbed further, rising 1.03 percent to 2,060 lire, although still short of year's high of 2,105 lire. Banca Commerciale also advanced, closing 1.06 percent higher at 3,896 lire.

*Among industrialists, Montedison continued to attract a big share of interest, turning over 19.35 million shares, but closing off the highs at 1,278 lire, a 0.47 percent rise.

*"There were some orders for Montedison from abroad but local speculators took profits, selling into the rise", a Milan broker said.

*The Comit index, computed by BCI and closely watched by technical analysts, stabilized above the 650 level at 651.05 up from a previous close of 650.95.

*Telecom stocks were also well bought with Telecom Italia Mobile leading the way up, gaining 1.95 percent to close at 2,089 lire in turnover of 17.96 million shares.

*Some analysts said TIM's upside potential could be limited ahead of launch of rival (Omnitel Pronto Italia).-Reuter