(Updates with full report)
VIENNA (Thomson Financial) - Shares closed flat, as the rebound-related gains posted by index heavyweights Raiffeisen International and Erste Bank were largely outweighed by OMV's decline on lower crude prices.
The ATX closed up 0.01 percent or 0.42 points at 3,546.95. The ATX Prime closed 0.32 percent or 5.39 points lower at 1,674.09.
The euro was trading at $1.5907, compared with $1.5914 at the same time on Friday.
Vienna's financials tracked the broader upswing in their sector, reflecting improved sentiment on the back of the U.S. government's rescue deal for mortgage giants Freddie Mac and Fannie Mae.
Raiffeisen International gained 2.13 percent to 75.68 euros and Erste Bank shares rose 1.75 percent to 37.11 euros, while Vienna Insurance Group added 0.23 percent to 39.94 euros. Both banking stocks had lost more than 6 percent in Friday's trading.
Index major Telekom Austria gained 1.18 percent to 13.71 euros on reports the group is pursuing plans to lower its headcount by 1,000 employees before the end of the year.
Shares in Wienerberger inched up 0.77 percent to 16.95 euros in heavy volumes, buoyed by bargain hunting following the stock's plummet of 30 percent last week on account of the group's profit warning.
UniCredit today slashed its target price by 52 percent to 22 euros, but left its 'buy' rating unchanged, while Erste Bank cut its rating to 'accumulate' from 'buy', with a new target of 21 euros.
Other blue-chip gainers included Strabag SE, up 0.98 percent at 43.21 euros, and Andritz, which took part in the rally among its industrial peers to close 2.22 percent higher at 36.81 euros.
Shares in ATX heavyweight OMV slipped 2.11 percent to 45.49 euros, reflecting the broad decline among oil stocks as crude prices retreated.
OMV said today that the public offer Hungary's MOL intends to make for Croatia's INA does not change the rationale behind the Austrian group's interest in bringing about a merger with MOL. OMV also again underlined its own interest in being invited to participate in any privatisation process the Croatian government might launch for INA.
Separately, OMV announced that the testing of condensate and gas at one of its gas exploration wells in southern Tunisia has been successful.
The generally weak sentiment for construction materials stocks once again weighed on Zumtobel, whose shares crumbled 7.34 percent to 11.11 euros. Observers expressed surprise at the scope of the stock's losses in the absence of news flow.
Flughafen Wien and Bwin extended the losses they had posted on Friday by slipping a further 3.80 percent to 53.47 euros and 3.31 percent to 15.20 euros, respectively.
Palfinger shed 2.22 percent to 17.60 euros, while Intercell mirrored the weakness among vaccine stocks by closing down 2.13 percent at 27.99 euros.
Mayr-Melnhof shares eased 0.95 percent to 54.10 euros, as the general downward trend among its carton board peers outweighed news that Goldman Sachs had started its coverage with a 'buy' recommendation and target price of 68 euros. peter.klopf@thomsonreuters.com pkl/ak/pkl/ak COPYRIGHT Copyright Thomson Financial News Limited 2008. All rights reserved. The copying, republication or redistribution of Thomson Financial News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Financial News.
© 2008 AFX News
