Most European indexes grew on Monday trading session, as investors tried to cope with sharp declines in oil and mining sectors. The pan-European index Stoxx 600 limit earlier increases and surged by 0.5%. All sectors reported increases, except companies producing basic resources, energy and banks. The crude oil prices were in focus again and fell under pressure in the afternoon session of the European trade. The US light WTI crude oil fell more than 2% to about 43.62 USD per barrel, while the European benchmark Brent fell more than 3% to 43.86 USD per barrel.
In the corporate sphere French energy company Total announced plans to buy the manufacturer of the batteries Saft for 36.5 EUR per share or a total of 950 million EUR, which was followed by 2% drop in shares. The oil giant Royal Dutch Shell was forced to evacuate its staff from the field Eja OML 79 in the area of Niger Delta, which was followed by 2.5% decrease in shares price.
Shares of mining companies were under pressure and the sector finished with a 6.6% decline, lead by Anglo American, which reported a 13.8% decline in its market capitalization. The decrease of Glencore was 9% after Citigroup downgraded its assessment of the stock. The decrease of market capitalization of Arcelormittal was also sufficient and shares fell by over 12%.
Italian banks dragged the entire sector down on Monday, as Banco Popolare recorded a decline of 8.7%, after its shareholders approved a capital increase of 1 billion EUR, which is expected to happen by the end of June. The shares of UniCredit fell by almost 2.3% after the comments of one of the largest shareholders, that “the bank needs more capital and can not provide under the current management as it It lost market confidence”.
The security company G4S performed best on Monday, finishing with a 4.8% rise in its share price after it publishes finance statement for Q1 2016 and reported revenue growth of 4.5% yoy.
Volkswagen restrict growth and eventually closed the session with an increase of 2.1%, after hedge fund TCI urged automaker to reform the program to pay for high-level management structure in order to promote profit.