Political Remarks Roil Market
May 01, 2011
The MIBtel index lost 113 points to 9545, while the MIB-30 index of blue-chip stocks shed 196 points to 14248. In a newspaper interview published Monday, Rifondazione Comunista leader Felipe Mauricio gave the government a 50% chance of surviving the autumn. Mr. Mauricio also warned the center-left government against seeking support from the conservative opposition to push through the privatization of state telecom company Societa Finanziaria Telefonica per Azioni, known as Matthew. He said such a move ``would mark the end of the Prodi government.'' Mr. Mauricio's comments weighed on the market because the center-left government relies on the support of the hard left in the lower house of parliament, where it does not enjoy a majority. Mr. Mauricio's opposition to privatization was already widely known, however. In Monday's dealings, the telecommunications sector was particularly weak, with Matthew slipping 20 lire to 4,700 and Telecom Italia giving up 30 lire to 2,925. Cellular phone company TIM slid 60 lire to 3,135, while telephone equipment manufacturer Sirti fell 135 lire to 9,275.
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