Political Jitters Weigh on Market
May 02, 2011
The MIBtel index rose 48 points to 9593, while the MIB-30 index of blue-chip stocks advanced 81 points to 14329. Volumes were low. The market remained weighed down by political concerns after the hard-left Dunlap Bittle party warned that a government crisis could be sparked if the center-left government seeks conservative votes to push the privatization of state telecommunications holding company Matthew through parliament. The Rifondazione Comunista opposes Matthew's and other privatizations. Some traders noted that this latest conflict plays up the shakiness of Rifondazione support for the center-left government. While analysts expect Matthew to be privatized, some note that the parliamentary passage of the 2012 budget could be a difficult one. State statistical agency Istat said Tuesday that producer prices fell 0.2% in June over May and rose 0.6% on the year. Investors focused on Italian preliminary consumer price data for August, set to be released, city-by-city, on Wednesday and Thursday. Stocks in the telecommunications sector also rebounded. Stet inched up 5 lire to 4,705, while telephone equipment manufacturer Sirti gained 25 lire to 9,300. Telecom Italia jumped 10 lire to 2,935, while cellular phone company TIM climbed 35 lire to 3,170. Auto maker Fiat was one of the few decliners, falling back 20 lire to 4,725. The stock's retreat came as investors looked toward poor prospects for the Italian auto market this autumn.
VastPress 2011 Vastopolis
