A host of big corporate names found themselves in the spotlight following the weekend weightings reshuffle for the Morgan Stanley Capital International (MSCI) indices. As part of a phased move later this year to free-float index weightings, MSCI has promoted many large, but relatively illiquid, stocks to its indices and disappointed investors with several notable exclusions.
BMW and Credit Lyonnais, for example, had both been active ahead of the changes in anticipation of MSCI inclusion. Neither got in. BMW fell 1.1 per cent to €41.05. A downgrade from "outperform" to "neutral" at HypoVereinsbank also hit sentiment at the luxury carmaker. Credit Lyonnais fell 2.1 per cent at €42.08.
Firm crude prices pushed up leading oil stocks but trading was fairly muted in the face of a rise above $29 a barrel for the first time this year. Apart from uncertainty ahead of next month's OPEC meeting, there was little driving crude prices. Total added 0.9 per cent to €176.20 and Royal Dutch 0.7 per cent to €70.75. Repsol lost ground.
Telecoms equipment group Ericsson stayed firm amid a swirl of rumours, ranging from top management changes to a takeover bid. The stock, boosted last week by additional reorganisation news and positive broker comment, gained a further 7.3 per cent to SKr73.
Alcatel, hit on Friday by confirmation that it was in talks that could lead to a multi-billion dollar takeover bid for Lucent Technologies of the US, rallied 3.6 per cent to €34.59.
Leading operators traded quietly. Deutsche Telekom hardened 2.2 per cent to €26.10 ahead of its first-quarter figures.
CS Group edged up 0.5 per cent to SFr331.50 as a 25 per cent fall in first-quarter net profits proved in line with expectations.
