STOCKS NEWS EUROPE-Benelux financials strong gainers

Thu Jun 18, 2009 4:47am EDT
 
[-] Text [+]

Shares in Benelux financial firms, some of the hardest hit during the current crisis, are among the strongest risers in Europe on cautiously upbeat comments from the Belgian national bank and a Goldman Sachs upgrade.

Dutch banker and insurer ING (ING.AS), the recipient of the Goldman update, rose 5.5 percent, while KBC (KBC.BR) and Dexia (DEXI.BR) of Belgium are 4.7 percent and 3.1 percent stronger. Insurer Aegon (AEGN.AS) gains 3.9 percent, Fortis (FOR.BR) 3 percent. All are in the top 10 of FTSEurofirst300 gainers .PGL.FTEU3, while the broader banking .SX7P and insurance .SXIP indexes are up less than 1 percent.

"They have of course suffered more in the last couple of days. That's the main explanation. You also have comments from the (Belgian) central bank that the worst is over," said one Brussels-based trader.

Central bank director Peter Praet said on Wednesday that the Belgian financial sector was out of "intensive care", but still in a difficult situation.

Goldman Sachs added ING to its conviction buy list and raised its rating to "buy" from "neutral", saying that it was confident of ING's ability to withstand losses and that its capital position had stabilised.

Reuters Messaging rm://philip.blenkinsop.thomsonreuters.com@reuters.net

 

Featured Broker sponsored link