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Market Update

Bayer Reduces Covestro Stake, VW Booked 2.5 B Charges Diesel Scandal Charge


Author: Sarla Buch
ticker.com
Last Update: 12:27 PM EDT September 29 2017

4:00 PM Frankfurt Aviva sell its stake in Italy-based subsidiary Avipop Assicurazioni to Banco BPM. Bayer reduced its stake in Covestro. Carillion tumbled after it lowered its fiscal revenue forecast. Volkswagen booked 2.5 billion charges from diesel scandal.

In London trading, FTSE 100 index advanced 53.78 or 0.7% to 7,377.10 and in Frankfurt the DAX index jumped 81.99 or 0.6% to 12,786.14.

In Paris, CAC 40 index increased 13.51 or 0.3% to 5,307.08.

For the week, FTSE 100 index rose 0.9%, the DAX index advanced 1.5% and the CAC 40 index gained 0.5%.

For the month, FTSE 100 index increased 0.6%, the DAX index soared 7% and the CAC 40 index jumped 5.5%.

For the nine-month, FTSE 100 index jumped 3.3%, the DAX index surged 11.4% and the CAC 40 index soared 9.2%.

Aviva Plc increased 0.9% to 514.50 pence after the U.K.-based insurer agreed to divest its stake in Italy-based subsidiary Avipop Assicurazioni SpA to Banco BPM SpA for about 265 million.

Bayer AG gained 1.5% to 114.60 after Germany-based chemicals, pesticides maker today said that it reduced its stake in the plastic materials manufacturer Covestro to 24.6% after selling off 6.9% stake for 1 billion or $1.2 billion.

In fiscal 2017, Bayer already divested three separate blocks of shares in Covestro for 3.7 billion.

Carillion Plc tumbled 17.1% to 53.25 pence after the U.K.-based construction services provider said revenues in the first-half ending in June were flat from a year ago at 2.5 billion.

Net in the period swung to a loss of 1.2 billion from profit of 71.7 million in a year ago six-month period and diluted loss per share swung to 261.2 pence from diluted earnings per share of 13.2 pence.

Net debt in the period nearly doubled to 571 million from 291 million in the same period of a year ago.

Carillion reported pretax loss in the period swung to a loss of 1.16 billion from profit of 84 million in a year earlier after impairment charge of 134 million in the U.K. and Canadian businesses.

The construction services provider lowered fiscal 2018 revenues forecast to between 4.6 billion and 4.8 billion from the earlier estimated range between 4.8 billion and 5 billion.

Volkswagen AG fell 0.3% to 138.05 after Germany-based automobiles maker forecasted operating profit in the third-quarter to be lower by 2.5 billion or $2.9 billion due to buy back or retrofit diesel engine cars in North America.

Volkswagen is scheduled to release its third-quarter result on October 27.

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Sources: Data collected by 123jump.com and Ticker.com from company press releases, filings and corporate websites. Market data: BATS Exchange. Inc