UpdateEurope chems stocks continue resurgence

13 October 2008 15:51  [Source: ICIS news]

(Releads and updates throughout)

 

LONDON (ICIS news)--European chemicals stocks continued to rise on Monday after the region's leaders agreed on a rescue plan to tackle the banking crisis.

 

At a meeting in Paris over the weekend, leaders of the 15-member eurozone agreed to guarantee inter-bank lending until the end of 2009, and said they would recapitalise them through buying preference shares.

 

The Dow Jones Eurostoxx Chemicals index had climbed 5.85% by 13:30 GMT, recovering marginally from a huge downturn over the last week.

 

Germany’s DAX index rose 8.20% against Friday’s close, the UK’s FTSE 100 was up 4.56%, while France’s CAC 40 surged 6.50%.

 

Chemicals major BASF’s shares were up 8.26% at €27.66, German chemicals and drugs maker Bayer rose 4.05% to €42.87, while coatings producer Akzo Nobel’s shares rose 3.55% to €29.00.

 

Several companies’ stocks surged by over 10%, including Rhodia, Lanxess, Wacker Chemie and fertilizer producer Yara.

 

Meanwhile the British government announced its plan to inject up to £37bn ($63bn/€46bn) of new capital into Royal Bank of Scotland, Lloyds TSB and HBOS, giving UK taxpayers a large share of the country’s major banks.

 

Asian petrochemical stocks also rebounded following weeks of heavy sell-down as investors cheered the measures of the industrialised economies to unfreeze the credit markets.

 

New York’s Nasdaq index rose over 4% in early trading on Monday.

 

To discuss issues facing the chemical industry go to ICIS connect

 

($1 = €0.74, $1 = £0.58)

By: Mark Watts
+44 20 8652 3214

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