Institutional Trading Sinks Shares
May 09, 2011
The Bel-20 Index of leading shares shed 7.47 to 1751.55 on volume of 2.2 billion Belgian francs. The Bel-20 eased 8.51 a day earlier. Traders noted that activity in baskets of shares underlying the Index was particularly hectic between 8:30 and 9 a.m. EDT, during which time the bourse sets the settlement price on products linked to the Bel-20 Index. The selling of baskets pushed the Index about 10 points lower in early morning trading and then ceased, allowing the Index to rise again. Several traders suggested a local bank might have been selling baskets, thus reducing the margin that would have to be paid out on Bel-20 linked products which expire Tuesday. Another trader added that some short selling took place by investors who think the market will likely decline during September because of problems with the Belgian budget. Chemical maker Tessenderlo, which reported a 29% drop in first half earnings late Monday, rose 125 francs to 10,950. Brokerage KB Securities said the share is a ``buy,'' based on its present price earnings ratio and the outlook for the second half of the year. Volume leader was petrochemical concern Petrofina which lost 110 francs to 9,660. Electricity utility Electrabel sank 10 francs to close at 6,890. The dollar late Tuesday in Europe traded at 30.428 Belgian francs, down from 30.454 francs late Monday, while the Belgian benchmark 10-year government bond yielded 6.62%, down from late Monday's yield of 6.65%.
