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Italian shares

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MILAN: Milan bourse ending firm around one percent up after healthy day buoyed by strong lira vs mark and by confirmation of slowdown in inflation growth, dealers said.

*Turnover reasonable for August but not massive, at about 550 billion lire shortly before end of trade.

*Bourse received a boost in afternoon from firm New York market, after encouraging morning helped by lira, which pushed on to latest five-month high at 1,119.50 per mark.

*Blue-chip Mib30 index closed up 1.08 percent at 15698 while Mibtel index was 0.92 percent stronger at 10525. Fib30 September future 136 points up at 15840.

*Official July data confirmed inflation rate at 5.6 percent year on year, in line with preliminary figures and slower than June's 5.8 percent.

Computer maker Olivetti off 1.7 percent at 1617 on persistent speculation of a capital increase despite company's comment last week that no decision had been made. De Benedetti holding CIR off 3.92 percent at 1226 in sympathy.

"Olivetti is always going up and down like a yo-yo, performing differently from the rest of the market," one trader here said.

Telecom Italia weaker than rest for most of day, up 0.03 pct at 2880. Traders say soft tone may be due in part to news former communist Democratic Party of Left presented draft bills to curb its power.

Banking sector finding favour, with Credito Italiano up 2.43 percent at 2110 with 17197500 shares traded.

Traders said Credito probably giving boost to other banks as well. Banca Commerciale Italiana up 1.13 percent at 3940.-Reuter