Italian bourse crashes amid Libya turmoil
The turmoil in Libya has taken its toll on the Italian stock exchange due to the strong financial bonds between Tripoli and Italy. Not surprising Monday was a hectic day in the Italian stock market, which recorded the worst performance in Europe.
The market lost 3.59% (the highest decline since June 2010). The decline in the Milan-based market was higher than Madrid (-2.33%), Paris (-1.44%), London (- 1.12%) and Frankfurt (-1.41%).
Investors have heavily sold shares of companies who have daily dealing with Tripoli and on the top of them energy company Eni. Libya is responsible for 14% of the Italian company's total production of hydrocarbons, which is also the first foreign operator in Libya. All in all, Eni share lost 5.12% yesterday. Experts claim the most catastrophic scenario for Eni would be the termination of contracts. In any case, Eni reported that currently there are no problems to plants and structures in Libya.
However, Italian quarters believe that the operations of the Italian companies in the Libyan market would not evaporate at once. It is also projected that even in the case of Colonel Qaddafi's fall the next rulers will be committed to approximately one billion euro in infrastructure deals.
- Oman’s Duqm tourist complex moves forward with government approval
- Kuwait fights budget deficit: Reexamining government salaries, expatriate labor
- Tunisian Confederation of Industry, Trade, and Handicrafts fights nationwide unemployment levels
- Construction costs fall in Dubai
- Western tourists flock to Iran, could generate $30B in new revenue