March 15, 2006	Wednesday	Safar 14, 1427

LONDON, March 14: European stock markets mainly dipped on Tuesday as investors fretted over high oil price levels, although trading here was lifted by fresh takeover news and solid results, dealers said.

London’s FTSE 100 index of leading shares climbed 0.30 per cent to 5,970.40 points in early deals. Frankfurt’s DAX 30 slid 0.32 per cent to 5,836.26 points and in Paris the CAC 40 decreased 0.07 per cent to 5,103.85 points.

The DJ Euro Stoxx 50 index of leading eurozone shares shed 0.20 per cent to 3,817.46 points.

The euro stood at 1.1956 dollars.

US stocks had ended mixed Monday as the positive impact from a series of acquisition announcements was offset by a spike in oil prices, which have since eased slightly, and persistent concerns about US interest rates, dealers said.

Stronger crude price levels lead to investor worries that rising energy costs will inhibit global economic growth and raise costs for companies across the world — but traditionally the energy sector is boosted.

Japanese share prices closed lower Tuesday as investors locked in profits after three straight days of gains that had pushed the key index to a one-month high, dealers said.

In London trading, Cairn Energy surged 5.78 per cent to 2,049 pence following upbeat annual results, which detailed significant reserve upgrades.

The oil explorer also suggested that it would be returning cash to shareholders via a partial flotation of its Indian operations.

Kesa Electricals, meanwhile, saw its share price rocket 18.4 per cent to 347 pence.

The electricals-to-furniture retailer said Tuesday it had rejected a takeover bid from a private equity firm that valued it at 1.72 billion pounds (2.49 billion euros, 2.99 billion dollars).

In the United States on Monday, the Dow Jones Industrial Average had zig-zagged throughout before closing flat at 11,076.02 points.

The Nasdaq composite managed to hold a gain of 0.22 per cent to finish at 2,267.03 and the broad-market Standard and Poor’s 500 index rose 0.20 per cent to 1,284.13.

Wall Street had opened on a strong note but the rally attempt fizzled in the face of a fresh increase in crude oil prices, which have since eased slightly.

In Asia on Tuesday, Tokyo’s benchmark Nikkei-225 index dropped 0.75 per cent to finish at 16,238.36.

Hong Kong’s benchmark Hang Seng Index fell 0.14 per cent to 15,519.76 points.

—AFP