Enduring fears about the situation in Ireland forced prices down in the week 22 to 26 November 2010.
In terms of sector, financial securities were hit particularly hard (banks –4.9%, insurance companies –4.5%).
The tyre segment was uncertain, after the downgrading of the sector by HSBC in view of the recent rally in natural rubber prices.
Pirelli closed the week at € 6.1, in line with Continental, Michelin fell by 2.4%. Pirelli volumes were in line with the average for the last month.
Pirelli upgraded by Equita (BUY, target price from €7.2 from €7.0). The broker has a positive view on the MoU signed with Russian Technologies and Sibur Holding to develop joint activities in the tyre and steelcord sectors, and in the supply and production of synthetic rubber derivatives in Russia.
Following Equita, the agreement will allow Pirelli to rapidly enter the Russian market with a technology compatible with Pirelli standards