Dated: 03 April 2009
Pirelli Shares rise
It seems investor interest has returned to the automotive industry, whose valuations have been laid low by the global crisis, with Italian tyremaker Pirelli & C (PECI.MI) shares rising 8 percent. With 35 million, more than the daily average for the past month, shares having changed hands.
Credit Suisse has upgraded the auto sector to "overweight" in a global strategy review after monthly sales figures show government incentives to buy new cars were starting to have an effect in major European markets.
Shares in European carmakers also saw a rise, with the DJ Stoxx Auto Index .SXAP up 1.7 percent as the top sectoral gainer in Europe, after Credit Suisse upgrades the sector to "overweight" from "marketweight" in a global strategy review.
The brokerage adds that "The industry has a great chance to use this downturn for more structural changes in order to become more efficient in the longer run."