AIRLINK 69.92 Increased By ▲ 4.72 (7.24%)
BOP 5.46 Decreased By ▼ -0.11 (-1.97%)
CNERGY 4.50 Decreased By ▼ -0.06 (-1.32%)
DFML 25.71 Increased By ▲ 1.19 (4.85%)
DGKC 69.85 Decreased By ▼ -0.11 (-0.16%)
FCCL 20.02 Decreased By ▼ -0.28 (-1.38%)
FFBL 30.69 Increased By ▲ 1.58 (5.43%)
FFL 9.75 Decreased By ▼ -0.08 (-0.81%)
GGL 10.12 Increased By ▲ 0.11 (1.1%)
HBL 114.90 Increased By ▲ 0.65 (0.57%)
HUBC 132.10 Increased By ▲ 3.00 (2.32%)
HUMNL 6.73 Increased By ▲ 0.02 (0.3%)
KEL 4.44 No Change ▼ 0.00 (0%)
KOSM 4.93 Increased By ▲ 0.04 (0.82%)
MLCF 36.45 Decreased By ▼ -0.55 (-1.49%)
OGDC 133.90 Increased By ▲ 1.60 (1.21%)
PAEL 22.50 Decreased By ▼ -0.04 (-0.18%)
PIAA 25.39 Decreased By ▼ -0.50 (-1.93%)
PIBTL 6.61 Increased By ▲ 0.01 (0.15%)
PPL 113.20 Increased By ▲ 0.35 (0.31%)
PRL 30.12 Increased By ▲ 0.71 (2.41%)
PTC 14.70 Decreased By ▼ -0.54 (-3.54%)
SEARL 57.55 Increased By ▲ 0.52 (0.91%)
SNGP 66.60 Increased By ▲ 0.15 (0.23%)
SSGC 10.99 Increased By ▲ 0.01 (0.09%)
TELE 8.77 Decreased By ▼ -0.03 (-0.34%)
TPLP 11.51 Decreased By ▼ -0.19 (-1.62%)
TRG 68.61 Decreased By ▼ -0.01 (-0.01%)
UNITY 23.47 Increased By ▲ 0.07 (0.3%)
WTL 1.34 Decreased By ▼ -0.04 (-2.9%)
BR100 7,394 Increased By 99.2 (1.36%)
BR30 24,121 Increased By 266.7 (1.12%)
KSE100 70,910 Increased By 619.8 (0.88%)
KSE30 23,377 Increased By 205.6 (0.89%)

European shares closed higher on Monday, rebounding from a near one-week low, as gains in retail and healthcare outpaced the fall in miners and energy, both bruised by concerns over China’s embattled property sector.

The pan-European STOXX 600 closed the day 0.2% higher, bouncing back from a more than 1% decline on Friday.

The healthcare sector gained 0.3%, with Philips jumping 4.4% after Dutch investment firm Exor NV took a 15% stake in the company. Exor dipped 0.3%.

The retail sector index was the top gainer, up 0.8%, with B&M European Retail gaining 3% following a Deutsche Bank price target raise.

However, miners and energy stocks led losses tracking lower crude oil and base metal prices on deteriorating demand outlook in top consumer China, reinforced by debt problems in its property sector.

Reuters reported Country Garden is seeking to delay payment on a private onshore bond for the first time after suspending trading in 11 onshore bonds.

The European basic resources index ended 1.5% lower, touching an over 10-month low intraday, while the energy sector closed 0.8% down.

Other China-exposed sectors like luxury lost 0.1%, while lenders Prudential, HSBC Holdings and Standard Chartered shed between 0.5% and 0.7%.

“The China story’s negative for European markets, especially for the more export-oriented ones such as Germany, as China is seen as the key export market,” said Andrea Cicione, head of research at GlobalData.TSLombard.

“We might be nearing the point where the bad news stops having an effect and maybe the government provides the kind of response that the market feels comfortable with… However, we don’t expect a large-scale stimulus.”

The benchmark STOXX 600 has come off its over one-year highs hit last month as ballooning growth concerns in China and sharp movements in bond yields have pressured equities.

Commodity-heavy European bourses also lagged, with UK’s FTSE 100 and Norway’s Oslo SE All-Share Index falling 0.2% and 0.3%, respectively.

Geopolitical issues also dented investor sentiment after a Russian warship fired warning shots on a cargo ship in the Black Sea over the weekend, with Ukraine condemning the move and calling for decisive countermeasures by the international community.

Economic data due this week include a flash estimate of euro-zone second-quarter GDP, fresh euro-zone inflation and British consumer prices.

Among individual movers, German dialysis specialist Fresenius Medical Care (FMC) dropped 5.1% to the bottom of the STOXX 600 following a UBS downgrade to “sell” from “neutral”.

Comments

Comments are closed.