Europe chems shares drop on financial uncertainty

26 September 2008 09:41  [Source: ICIS news]

LONDON (ICIS news)--Shares in European chemicals and oil companies dropped again on Friday as the markets reacted to uncertainties over the recent US financial rescue efforts and the assets of banking group Washington Mutual were brought by JP Morgan Chase & Co.

The FTSE 100 index of UK companies fell 1.75% to 5,106.18 at 07:25 GMT, with shares in chemicals firm Johnson Matthey dropping 2.48% to 1,414 pence.

At the same time, UK oil major BP’s shares were down 1.71% from the previous close at 489.5 pence, while stocks in oil and petrochemicals firm Shell were 1.5% lower at 1,707 pence.

The Dow Jones Eurostoxx 50 index dropped 1.68% to 3,153.10 at 07:30 GMT.

Shares in German chemicals majors BASF and Bayer fell 1.5% to €34.76 and 1.69% to €53.50, respectively.

Industrial gases firm Air Liquide’s shares were down 1.4% at €81.53, while shares in French oil major Total fell 1.74% to €43.665.

Shares in troubled Belgian bank Fortis plunged by another 9.47% to €5.93.

Fortis shares fell 21% on Thursday to a 14-year low, before recovering to €6.53 at the close of trading, a drop of 6.3% on the previous close.

Belgian business daily De Tijd said on Friday that Fortis was considering the sell-off of core activities to shore up its operations.

Federal bank regulator Office of Thrift Supervision (OTS) said Washington Mutual (WaMu) had been sold to financial services giant JP Morgan Chase & Co for $1.9bn (€1.29bn) after it was seized by the US government.      

The fallout followed the collapse of US investment bank Lehman Brothers, the corporate rescue of American International Group (AIG) and the controversial $700bn bailout proposal by the Federal Reserve.

($1 = €0.68)

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By: Hilde Ovrebekk
+44 20 8652 3214

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