960412

Mir Hamza

Italian shares

drive higher

ahead of weekend

MILAN: Milan shares rallied strongly at the end of a strong advance throughout the week buoyed by the sharp rise in US T-bonds and a focus on stocks fundamentals rather than fretting about the outcome of the upcoming general election.

Dealers said that a weaker-than-expected economic survey from the University of Michigan consumer sentiment index sent T-bonds higher as it made any early Fed tightening less likely. A stronger start to Wall Street also helped pushed shares higher after a temporary pause for breath on Thursday.

The all-share Mibtel index ended 1.22 percent higher at 9,799 and the blue chip Mib30 was up 1.57 percent at 14,564.

On the international front, dealers said U.S. consumer price inflation data for March which came in at 0.4 percent after forecasts of 0.3 percent gave the market a pause for through but then the Michigan survey propelled the US higher.

Blue chips gained across the board with bullish sentiment holding for ENI after it announced a big dividend increase earlier this week. Shares were up 3.16 percent at 6,300 lire.

Olivetti gained 1.61 percent to 853 lire on optimism ahead of the group's 1995 full year results due on April 16, while Fiat ended up 1.23 percent at 5,340 lire and Pirelli was 1.57 percent firmer at 2,330 lire.

Dealers pointed out this week's rally was based on there being a clear outcome to the April 21 vote or that the result would have little effect on the market. But this was still difficult to envisage with the last polls conducted at the end of the last month putting both coalitions neck and neck.-Reuter