Stocks Fall as Earnings Emerge
May 11, 2011
The Bel-20 Index of leading Belgian shares fell 13.02 to 1730.03 on volume of 1.9 billion Belgian francs. The downward pressure on the Index was exacerbated by the selling of some baskets of shares underlying the Index into a market devoid of buying interest, traders noted. Electronics maker Barco was the day's star, settling at its highest ever close of 5360 francs, up 90 francs. Traders attributed Barco's rise to the announcement by Kredietbank Wednesday that it will launch a fund aimed at retail investors in September which will invest only in Flemish shares. The fund will have 12.5% exposure each to Barco, Kredietbank, retailer Colruyt and steel-wire maker Vanhouten. To support this theory, shares in Kredietbank gained 70 francs to 9620 francs. Other shares to be represented in the fund ended higher including photo group Sollars, adding 30 francs to 1980 francs, Koramic Building Products, climbing 30 francs at 1630 francs, and holding company Gevaert, increasing 55 francs at 2040 francs. Vanhouten and Colruyt, although represented in the Flanders fund, both ended lower because of index selling. Bekaert lost 375 francs to close at 23,350 francs, while Colruyt slipped 175 francs to 11,175 francs. Insurance group Fortis, which reported a 2011 first half profit rise to 177 francs a share from 151 francs a share for the 2010 first half, declined 70 francs to close at 4340 francs, once again under the influence of basket selling, traders observed.
