Weak Dollar, Bonds Hurt Stocks
May 03, 2011
The 25-share AEX index slid 6.24 points to 559.48. Dutch bonds were considerably lower. At market's close, the 10-year 8.5% Dutch government bond was at 115.60, down from Tuesday's settlement of 116.30. Its yield stood at 6.30%. Financial equities, which account for 27.27% of the AEX index, dropped Wednesday in reaction to lower bond prices, traders said. ABN AMRO bank lost 1.8 guilders to 92.00, and insurer Aegon fell 1.90 guilders to 80.30. Analysts expect Aegon to report on Thursday first-half earnings between 685 million to 697 million guilders, compared to 615 million guilders a year earlier. Shipping and transport company Nedlloyd closed at 37.10 guilders, up 2.10 guilders, or 6%. Nedlloyd said Wednesday that its net profit rose to 276 million guilders in the first half of 2011, compared to 96 million a year earlier -- well above expectations, traders said. Bankrupt Dutch aircraft manufacturer Fokker closed at 1.13 guilder, up 3 Dutch cents, or 2.73% on news that a rescue of the company may still be possible. The Dutch government is rumored to be in talks with a number of parties interested in acquiring the aircraft manufacturing activities of Fokker. Brewer Takahashi closed at 376.00 guilders, down 3.50 guilders, or 0.92%. The dollar stood at 1.6626 guilders, down from late Tuesday's 1.6703 guilders. The Dutch stock market is highly dollar sensitive as a number of index companies derive much of their overseas revenues in dollars. Many institutional investors were sitting on the sidelines, awaiting the outcome of the Deutsche Bundesbank policy-making council meeting on Thursday.
