950808

Italian stocks

slightly weak

as above day's lows

MILAN: Milan bourse chugging to weak finish slightly above day's lows in general lapse linked to bonds and lira which traders said was natural after recent run of gains.

Volumes mediocre, around 600 billion just before close, which traders say is par for course in holiday-hit August.

Everything is linked to the bond market and the lira today both are a bit easier so stocks are a bit easier," said one trader at a Milan-based brokerage. "But there's still a positive feeling on Italy and the lira."

Blue-chip Mib30 index down 0.59 percent 15606 and Mibtel index off 0.53 percent at 10469.

Fib30 September future 97 points down at 15760. Traders say trade fairly evenly split between futures and cash today.

Bourse Association said trade in futures index almost equalled cash stock market in first half of year, with average daily trade in underlying market totalling 604.3 billion lire in January-June and 579.9 billion in futures.

International focus on Germany for possible interest rate cut with repo result due tomorrow and Bundesbank council meeting Thursday, although traders here say easing unlikely and market not seen suffering much if non happense.

Milan lacking own news, seen following other markets. Movement in stocks include bounce from De Benedetti holding CIR which closed up 1.47 percent at 1246 after recent persistent speculation of capital increase at Olivetti depressed price. Olivetti down 0.99 percent at 1593 after opening strongly.

Clothing company Benetoon also bucking trend, up 0.4 percent at 17366, turnover 363500 shares, traders say no obvious reason for gain.-Reuter