960405

J A V E D

FIVE-FOUR-1996

Italian shares

slum due to

bonds' slide

MILAN: Shares on the Milan bourse slumped lower at the close following the decline in domestic bonds which in turn reflected the fall in U.S. markets due to stronger than expected growth in U.S. jobs during in March.

Stocks had tentatively edged higher in early trading following bonds, but trading was extremely quiet with most other European bourses closed. But the strong rise in new jobs caused the T-bonds to slump a full point and Italian bonds and shares felt the ripples from across the Atlantic.

The Mibtel index rose 0.75 percent to 9,392, while the blue-chip MIB30 increased 1.02 percent to 13,814.

March U.S. non-farm payrolls showed greater growth than forecast with new jobs totalling 140,000 compared to an expected 60,000, after the February rise was revised down to 624,000 from 705,000. The jobless rate was 5.6 percent after 5.5 percent.

Economists said U.S. economy growth remained generally strong in March and left little room for early cuts in U.S. interest rates, which prompted the fall in U.S. bonds.

Most blue chips stocks fell with Fiat off 1.33 percent to 5,120 lire, ENI down 0.72 percent at 5,904 lire, and Olivetti off 1.16 percent to 799.7 lire. The erratic Banco di Napoli managed a 1.44 percent gain to 657 lire.

Bourse volume was very light at under 200 billion lire of business with most other European bourse closed on Friday Daily volume was down at 171.574 billion lire after Thursday's 412.757 billion lire.

The Milan bourse will be closed on Monday and will reopen on Tuesday April 9.-Reuter