The
PCI Suppliers’ Index followed
its cousin, the Manufacturers’ Index (see May issue), into robust terrain. The
index increased 79.82 points, or 7.54 percent, to close the session at 1138.43.
Advancing issues handily outpaced declining issues by a 2-to-1 margin. BASF,
Altana and Bayer were the heavy hitters in the chart, each increasing by more
than 10 points this session. Albemarle (NYSE: ALB) had a 2-for-1 stock split
effective March 2, 2007.
Shares of BASF tore ahead after the company reported first quarter profit ahead
by almost 9 percent, upped by its acquisition of Englehard last year. The
company earned €1.04 billion, or US$1.42
billion, compared to €950 billion earned in the same quarter last year.
Analysts surveyed by Dow Jones Newswires had expected earnings of €920 billion, or US$1.26
billion, on sales of US$19.74 billion. BASF reported sales of US$19.97 billion
for the quarter. “The good start in the first quarter confirms our positive
outlook for 2007,” said BASF CEO Juergen Hambrecht. “We expect significantly
higher sales based on organic growth and the acquisitions made in 2006.” BASF
also rose on rumors that the company may be a takeover target. BASF leaped
17.04 points, or 16.74 percent, and was the top dollar gainer. BASF closed at
118.81.