Energy stocks boost Europe

November 9, 2001 Posted: 1253 GMT

LONDON (CNN) -- European markets remained down on Friday, but energy shares bounced up, led by BP.

London's FTSE 100 index was down 26.46 points to 5,251.7, up from a low of 5,232.1, while in Paris the benchmark CAC-40 index was down 0.43 percent at 4,553.21 points, off an earlier session-peak of 4,508.43 points.

Frankfurt's DAX index fell 1.32 percent to 4,927.73 points.

In the energy sector BP, Royal Dutch, sister company Shell Transport & Trading, Italy's ENI, and France's Total Fina Elf all rose by a half to one percent each on the back of growing indications from oil producers' cartel OPEC that it is planning a 1.5 million barrels a day cut in output from December.

After the European Central Bank, the Bank of England and the Federal Reserve all delivered aggressive half-point cuts in interest rates this week, investors are divided over whether the moves are enough to patch up the bruised global economy or simply highlight the bleakness of the current environment.

Shares in Dutch KPN Telecom dropped six percent in initial dealings after the company's chief executive said the company would lower its revenue target of 10-15 percent growth in the coming years.

Elsewhere, Germany's Commerzbank led the banking sector down 1.75 percent, dropping 5.3 percent after posting third quarter numbers below analysts' expectations.

Commerzbank reported a third-quarter loss of 184 million euros against a profit of 343 million euros a year ago, and said nine-month net profit plunged 94.6 percent to 78 million euros.

Shares in France's national airline Air France nosed up 0.6 percent despite its statement that second-quarter profits would be sharply below the year-ago level due to the September attacks on New York and Washington.

The company said second-quarter sales held up, rising 2.4 percent. Passenger traffic fell 10.1 percent in October, in line with its forecast.