European stocks fell for the first time in five days as China unexpectedly increased bank reserve requirements, overshadowing better-than-estimated earnings from ThyssenKrupp AG and Eni SpA.

PSA Peugeot Citroen led automakers lower after China ordered banks to set aside more deposits as reserves for the second time in a month. ThyssenKrupp, Germany's largest steelmaker, climbed 2.8% and Eni, Italy's biggest oil company, rose 1.1%.

The Dow Jones Stoxx 600 Index fell 0.3% to 241.02. The benchmark measure for European equities has retreated 7.4% from this year's high on Jan. 19 amid concern that Greece, Spain and Portugal will struggle to reduce their budget deficits. The gauge climbed 1.5% this week as the European Union Thursday pledged "determined and coordinated action" to help Greece.

National benchmark indexes declined in 12 of the 18 western European markets. The UK's FTSE 100 dropped 0.4% and France's CAC 40 fell 0.5%. Germany's DAX slipped less than 0.1%.

Greece's ASE Index sank 2.1% as the country's statistics service revised down its gross domestic product data for the first three quarters of 2009.

Europe's recovery almost stalled in the fourth quarter as waning spending and investment in Germany unexpectedly brought growth in the region's largest economy to a halt.

GDP in the 16-nation Euro region rose 0.1% from the third quarter, when it gained 0.4%, the European Union's statistics office said. Economists had forecast expansion of 0.3%.

GERMANY

German stocks were little changed as a report showed the country's economy stagnated and China moved to cool growth, offsetting better-than-estimated earnings at ThyssenKrupp AG.

Daimler AG and Bayerische Motoren Werke AG followed European carmakers lower after China ordered banks to set aside more deposits as reserves for the second time in a month. ThyssenKrupp, Germany's largest steelmaker, climbed 2.8%.

The benchmark DAX Index slipped 0.1% to 5,500.39, even as 16 out of 30 stocks advanced. The measure still climbed 1.2% this week, the first such gain in a month. The broader HDAX Index fell 0.1% Friday.

Daimler and BMW, the world's biggest makers of luxury cars, lost 1% to 32.46 Euros and 1.7% to 29 Euros, respectively. The Dow Jones Stoxx 600 Automobiles & Parts Index fell 2.1%, the worst performance among 19 industry groups in the broader measure. Volkswagen AG's preferred shares slipped 1.9% to 56.06 Euros.

ThyssenKrupp increased 2.8% to 22.96 Euros. Germany's largest steelmaker reported its first quarterly profit in a year as it benefited from reduced costs and a rebound in demand for the metal.

Net income in the fiscal first quarter, which ended in December, was 164 million Euros ($224.4 million), compared with 168 million Euros a year earlier.

Carl Zeiss Meditec retreated 1.7% to 12.17 Euros. The company said it's not "content" with a decline in first-quarter revenue though it affirmed growth targets for the full year. Sales dropped to 156.2 million Euros from 177.9 million Euros.

Freenet increased 2.4% to 9.65 Euros. The company plans to quadruple its dividend to "at least" 80 Euro cents, Chief Executive Officer Christoph Vilanek was quoted as saying in an interview told WirtschaftsWoche in an interview.

Q-Cells slumped 6% to a record low of 7.95 Euros. SES Research cut its share-price estimate 47% to 4.50 Euros, saying the solar company may post further losses in 2010.

FRANCE

France's CAC 40 Index declined for a second day, falling 17.68, or 0.5%, to 3,599.07 in Paris. The gauge has increased 1% this week. The SBF 120 Index also lost 0.5% Friday.

Assystem climbed 31 cents, or 3.6%, to 8.85 Euros, a third gain this week. The company, which offers research and development services, was raised to "buy" from "reduce" at Gilbert Dupont.

BNP Paribas retreated 90 cents, or 1.9%, to 47.60 Euros, a second day of losses. The French bank was downgraded to "hold" from "buy" at Deutsche Bank AG.

Bouygues lost for a second session, falling 1.11 Euros, or 3.2%, to 33.37 Euros. Oddo Securities downgraded the construction company to "reduce" from "add."

Cie. de Saint-Gobain dropped 1.17 Euros, or 3.6%, to 31.36 Euros, the lowest in more than five months. Morgan Stanley downgraded Europe's biggest building materials supplier to "underweight" from "equal weight." The brokerage said in a note that the balance of risk and reward is relatively unattractive.

Credit Agricole fell for a second day, losing 28.5 cents, or 2.7%, to 10.11 Euros. Bank stocks were among the worst performers in Europe after China's central bank said it will raise banks' reserve requirement ratio by 50 basis points.

Societe Generale retreated 1.26 Euros, or 3.1%, to 39 Euros.

Michelin & Cie. dropped for a second session, falling 1.53 Euros, or 2.9%, to 50.48 Euros. The world's second-largest tiremaker reported 2009 net income of 106 million Euros, compared with an average analyst estimate of 121 million Euros. Morgan Stanley reiterated an "underweight" rating, pointing out the lack of outlook "due to poor visibility and high raw material cost environment."

PSA Peugeot Citroen, Europe's second-biggest carmaker, slid 83 cents, or 4.1%, to 19.57 Euros, a third loss. Automobile stocks were the worst performers in Europe Friday. "Momentum is turning negative on the car sector due to the lack of visibility on the second half," Kepler Capital Markets wrote in a note. Renault SA (RNO FP), France's second- largest carmaker, dropped 1.45 Euros, or 4.7%, to 29.56 Euros, the lowest since Sept. 3.

Nexans retreated 2.8 Euros, or 4.9%, to 54.30 Euros, paring a 6.7% gain Thursday. BofA Merrill Lynch Global Research cut its recommendation on the world's biggest maker of cables and wires to "neutral" from "buy."

Rougier increased 1.18 Euros, or 5.9%, to 21.18 Euros, the highest in almost three weeks. The wood- paneling maker forecast a "gradual" recovery in 2010 after sales fell 21% to 124.9 million Euros last year.

BELGIUM

The Bel 20 in Brussels closed out the week at 2,461.47, up 0.31% for Friday's session.

KBC Bank Ireland posted a net profit of €92 million in 2009, down 10% on the previous year, after loan losses more than trebled to €176 million. The bank's loan book dropped to €18 billion from €18.8 billion, reflecting limited demand among borrowers.

Chief executive John Reynolds said the bank's Brussels-based parent was keen to "carve out a significant niche in the Irish market".

He said the bank would not consider buying any part of the €10 billion retail loan book at Bank of Scotland (Ireland), which is closing its intermediary and Halifax retail business and branches.

"We are more comfortable with organic growth," he said, adding that the bank expects to post a similar performance in 2010. "If we can push the loan book up toward €19 billion, that would probably be a good performance," he said.

Operating income rose to €330 million from €235 million, as funding costs improved in 2009. "It was a good year in a horrible environment. We hope to be substantially profitable in 2010," he said, adding that he was also hopeful the Irish market would be "a bit more buoyant in 2011".

Deposits rose by about €6 billion from €5 billion the previous year, representing 30% of total loans, with a further 20% of funding coming from the bank's parent KBC in Belgium.

"There has been a degree of easing on our funding in 2009, though not as much as we would have liked," he said.

Arrears of 90 days or more on KBC's €13.4 billion Irish home loans and residential investment mortgages rose to 3.7% from 2% the previous year.

Belgian property investment group Cofinimmo said on Friday profit in 2010 would be similar to the levels reached in 2009 and proposed a dividend for 2009 in line with its own guidance.

Net current profit for 2009, excluding the impact of accounting rule IAS 39 (adjustments in the value of financial instruments) but including non-recurring items, was 92.4 million Euros .

A Reuters poll of four analysts had produced an average expectation of 95 million Euros.

Per share, the figure was 7.47 Euros, just above the group's guidance for net current profit of 7.40 Euros. This compared with 7.30 Euros per share in 2008.

The dividend would be 6.50 Euros per share for 2009, as it had previously forecast, compared to 7.80 Euros per share in 2008.

The Brussels-based group, which rents out office space to businesses and government institutions, also said its net current result per share in 2010 would be fairly close to the level reached in 2009. It would provide a more detailed forecast at the end of March.

Belgian imaging technology group Agfa-Gevaert will expand significantly in emerging markets in the next two years and no longer has any interest in splitting up.

Significant cost cutting helped the company, which makes hospital imaging systems and printing systems for publishers, to swing back to profit in the third quarter of 2009 after its graphics unit in particular was hit hard in the downturn.

"We have corrected the cost, almost completely renewed management and dealt with the question of debt," said outgoing chief executive Jo Cornu, who hands over to healthcare division head Christian Reinaudo in April.

Since its public listing in 1999, Agfa, once a photographic company, has undergone significant restructuring to cut costs and adjust to changing markets. Net debt at the end of 2009 stood at 445 million Euros, down from about 850 million Euros when Cornu first took the reins in December 2007.

The graphics business, focused on the media and publishing sector as well as printing on textiles and packaging, would launch new products such as synthetic paper to make up for the loss of its traditional products in mature markets, Cornu told reporters.

THE NETHERLANDS

In Amsterdam the AEX finished the week on 315.74, down 0.33%.

The 35 billion Euro ($48 billion) pension fund for Dutch metal and mechanical workers plans to cut western property exposure as it seeks to diversify through higher allocations to emerging and Eastern markets.

Theo JEurissen, Chief Investment Officer of the PMT scheme, said it currently invests about 12 pecent of its assets in property, mainly via direct investments in the Netherlands and through partnerships with local managers in Germany, Austria, Italy and Japan.

The fund has invested mostly in prime locations targeting relatively stable returns, but this portion of its portfolio still lagged all the other asset classes in 2009.

Property values over much of Europe continued to plunge in the first half of 2009 before bottoming out late in the year.

Falling rents and reduced tenant demand continue to spook many risk-averse investors who are still counting the costs of highly-leveraged real estate deals that crumbled in the wake of the credit crisis.

Dutch consumer prices rose 0.8% year-on-year in January, slower than December's 1.1% rise, the Central Bureau of Statistics said Thursday. Economists had expected a rate of 1%. Inflation fell for the first time in six months.

On a monthly basis, consumer prices logged zero growth in January.

The harmonized index of consumer prices rose 0.4% year-on-year, slower than 0.7% rise in December. The HICP fell 0.3% month-on-month.

Dutch industrial production rose 1% year-on-year in December following a fall of 2% in November, the Central Bureau of Statistics said Monday. That was the first increase since June 2008.

On a monthly basis, seasonally adjusted industrial production fell 2.2% in December, reversing a 0.4% rise in November. In 2009 as a whole, industrial production declined 9% over 2008.

In a separate report, the statistical office said industrial turnover rose 3% in December compared to the previous year. It follows a 4% drop in November. Turnover declined 20% in 2009.

AUSTRIA

Vienna's ATX rounded off the week on 2,449.57, down 0.80%.

Wienerberger pledged it would not close down any factories this year after the Austrian brick producer shut 31 plants and sacked 2,500 workers in various countries in 2009.

"From what we know Friday, no factories will be shut this year," company boss Heimo Scheuch said this week.

Scheuch said he was cautiously optimistic for the Vienna-based firm's activities in Poland due to the country's strong domestic demand, adding that the economic future of Central and Eastern Europe would be "hard to estimate".

The firm's chief also said he expected Wienerberger's order situation this year to be better than in 2009 due to "restructure measures" and cost-cuttings the company carried out.

Machine builder Artec Maschinenbau GmbH entered bankruptcy proceedings Tuesday in Upper Austria, according to the Credit Protection Agency of 1870 (KSV) and Creditreform.

KSV said the bankruptcy would affect the firm's 20 employees and 137 creditors. KSV put Artec's debt at around 4.8 million Euros and added the firm would seek a forced settlement with creditors.

KSV said Artec had one million Euros in short-term debt that should be paid immediately and the rest of its debt was long-term.

The reason for the decision to enter bankruptcy proceedings, KSV said, was a drastic decline in orders as recession had a strong negative impact on the machine building industry.

Artec entered bankruptcy proceedings for the first time in 2004 and won a forced settlement with creditors providing for payment of 20 cents on each Euro owed.

Vienna champagne and spirits producer Schlumberger reported higher turnover in the first three quarters of its 2009/2010 business year (1 April to 31 March).

Firm spokesman Benedikt Zacherl said turnover had risen by 5.4% year on year to 179 million Euros. He added that turnover had risen by 3.8% if the acquisition of Hochriegel in November and the sale of Appelt in August were excluded from the calculation.

He cited a focus on the Austrian origin of the firm's products in marketing and concentration on the firm's champagne core business as the reasons for better results and said the firm wanted to raise its turnover by five to six% in its next business year.

He also noted Schlumberger had begun sales in the Russian, Romanian and Ukrainian markets last year.

Zacherl said Schlumberger had had a champagne market share of 30% last year, second to Henkel with 32%.

SWITZERLAND

In Switzerland the SMI in Zurich ended the trading session and the week on 6,416.20 - up 0.20% and one of the few European markets to be positive Friday.

Swiss private bank Sarasin will sell a subsidiary back to its Italian founders after regulatory changes prompted the bank to change its strategy with respect to Italian clients. The bank said on Friday it had agreed to sell Sarasin Colombo Gestioni Patrimoniali SA, based in Lugano in the Italian-speaking Swiss canton of Ticino, back to the Colombo family for an undisclosed price.

"The market situation and regulatory developments over the recent months in Italy have prompted the executive management of Bank Sarasin to pursue new business opportunities in Italy," said Sarasin in a statement, without giving details.

A financial hub for many of Italy's most wealthy families, Ticino has been shaken by Italy's third tax amnesty in a decade and was targeted by Italian Economy Minister Giulio Tremonti, who also ordered raids on Swiss banks in Italy in October.

The tax amnesty, during which 95 billion Euros ($131 billion) was repatriated to Italy, has been extended to April from December, the previous deadline.

The Swiss government will probably have to turn to parliament to resolve a legal impasse threatening a deal struck with the United States to hand over data from UBS AG clients, a minister was quoted as saying.

The Swiss government had raised the option of parliament retroactively approving the deal, involving UBS clients suspected of dodging taxes, after a Swiss court ruled in favour of a UBS client seeking to prevent her account data from being given to the US tax agency. [ID:nLDE60P26N]

But the government's preferred solution has so far been to negotiate a way out, hoping the United States would drop the issue if more than 10,000 UBS clients had turned themselves in voluntarily.

"I assume Friday that parliament has to get involved," Justice Minister Eveline Widmer-Schlumpf told Swiss daily Blick in an interview published on Thursday.

"The United States insist that we stick to the fundamentals of the agreement. This means they want the some 4,500 sets of client data, which refer to cases of severe tax evasion and tax fraud," she said.

Only some of a total 14,000 clients who have turned themselves in voluntarily to US authorities are UBS clients, Widmer-Schlumpf said when asked if not enough UBS clients have turned themselves in, without giving a detailed number.

A spokesman for the justice ministry said talks with US authorities were continuing, also declining to provide further details.

Switzerland's annual inflation rose to 1% in January from 0.3% last month, the Federal Statistical announced Thursday. Economists had expected annual inflation to increase to 0.8%. Month-on-month, consumer prices were down 0.1%, while economists were expecting a 0.4% fall.

Switzerland's unadjusted jobless rate rose to 4.5% in January from 4.4% in December, the State Secretariat for Economic Affairs said Monday. Economists had forecast a rate of 4.6%.

There were 175,765 unemployed people at the end of January in the country, up from 172,740 in December.

The seasonally adjusted rate of unemployment was 4.1% in January, down from 4.2% recorded in December. That was in contrast to an increase to 4.3% predicted.

SWEDEN

Stockholm's OMX headed into the weekend on 931.35, a drop of 1.30% for the Friday session.

Thursday, the Executive Board of the Riksbank decided to leave the repo rate unchanged at 0.25% and said it will begin to raise the repo rate in the summer or early autumn. The decision was in line with expectations.

The central bank said the assessment now is that the upturn in economy activity rests on more solid ground. Hence, there are sound reasons for increasing the repo rate somewhat sooner than was assessed in December.

Wednesday, the Statistics Sweden announced that the industrial output dropped 5.8% year-on-year in December, slower than the 12.4% fall in November, revised from 12.6% decline reported initially.

Manufacturing output fell 6.6% annually in December, while mining and quarrying output rose 17%.

On a monthly basis, industrial output increased 1.8% in December, slower than the 1.9% growth in the previous month, revised from 2% increase estimated initially.

New orders received by Swedish industries increased 1.1% month-on-month in December, following the upwardly revised 2.4% increase in the previous month.

This came despite a 2.4% fall in export orders. Industrial orders in the domestic market were up 0.4%.

On a yearly basis, new orders grew 8% in December, faster than the 1.5% increase in the preceding month. Orders in the domestic market increased 7.3%, while those in the export market were up 8.6%.

The activity index, which broadly measures activity in the Swedish economy, climbed a seasonally adjusted 0.2% month-on-month in December, following the 0.8% increase in the previous month.

In trend terms, the activity index rose 0.1% in December, the same rate of increase as in preceding month.

The increase in the activity index was mainly due to an increasing trend in exports of goods, industrial production and retail trade turnover, the statistical agency said.

Sweden's jobless rate stood at 5.7% in January, up from 5.6% in December, a report from the Public Employment Service said on Wednesday. Economists' expected the jobless rate to be 5.7%. The jobless rate is measured by the number of unemployed registered with the Employment Service.

The number of unemployed registered in the employment service totaled 265,000 in January, showing an increase of 1.2 percentage points or 55,000 persons over a year ago.

In January, the number of registered unemployed at the Employment Service and the number of programs who are supported amounted to 438 000 persons,which was 9.4% of the workforce, the agency said.

DENMARK

Denmark's OMX closed a volatile week once again on 349.74, up 0.35% for the day.

Danish audiologic tools group GN Store Nord said Friday its 2009 EBITA will be pulled down by DKK85m provisions related to certain legal issues involving its headset unit GN Netcom.

Excluding these provisions, GN expects its full-year EBITA from ongoing operations to exceed its previous guidance for DKK65m due to better-than-expected development in the fourth quarter.

The provisions are for potential defence and settlement costs related to legal issues including possible fraudulent actions committed by an employee.

GN said it could not further elaborate on the issues at this point due to their nature.

The group is due to release its financial report for 2009 and its guidance for 2010 on 24 February 2010.

The consumer price index or CPI increased 2% year-on-year in January, faster than the 1.4% growth in the previous month. Economists expected an increase of 1.5%.

On a monthly basis, the CPI rose 0.3% in January, after falling 0.2% in December. Economists were looking for a decline of 0.3%.

Meanwhile, the harmonized index of consumer prices or HICP rose 1.9% on an annual basis in January, faster than the 1.2% growth in the preceding month. The HICP climbed 0.3% compared to the preceding month.

Denmark's seasonally adjusted trade surplus narrowed to DKK 6.2 billion in December from DKK 6.7 billion surplus in November, the Statistics Denmark said Monday.

Exports were up 40.5% year-on-year, almost similar to the 40.2% rise seen in November. Imports grew 34.3%, faster than 33.5% increase in the previous month.

Trade surplus for the fourth quarter was DKK 19.3 billion.

NORWAY

The OBX in Oslo ended Friday on 310.94, off 1.41% for the day.

Low fare airline Norwegian has presented the best annual result in the company's history. The net result after tax amounted to 446 MNOK. The last quarter was also the best Q4 ever.

During 2009, Norwegian had a strong passenger growth and carried 10.8 million passengers, an increase of 18% compared to the previous year.

I am very pleased with reporting positive results in a time where the industry is facing challenging market conditions, said CEO Bjørn Kjos. - I am especially pleased with our cost reductions and improved competitiveness. The unit cost for 2009 was reduced by 13% compared to 2008.

During 2009, Norwegian launched 63 new routes, of these 30 in Denmark, 18 in Sweden and 15 new routes in Norway.

On Thursday Norwegian launched, for the first time, new routes from Oslo and Stockholm to Helsinki.

Statoil Thursday posted a more than threefold rise in net profit for the fourth quarter of 2009, as higher oil prices and lower tax rates more than offset weak refining margins and gas prices.

But the Norwegian oil giant said they may delay some Norwegian natural gas production and miss its original output target for 2012, offering the latest evidence of concerns over the depressed prices in the gas market.

Statoil further gave a bleak outlook for refining margins. "We anticipate that [refining margins] will remain low, at least in the near term," Statoil said in a statement.

Statoil's profit was hit by a 55% drop in its refining margins to $3.4 per barrel in the fourth quarter of 2009, echoing similar woes at rivals Total SA (TOT) and at Royal Dutch Shell PLC (RDSB.LN), Exxon Mobil Corp. (XOM) and Chevron Corp.

The Norwegian oil giant said fourth-quarter net profit rose to 7.1 billion Norwegian kroner ($1.25 billion) from NOK2.0 billion a year earlier, but lower than the consensus in a Dow Jones Newswires poll of five analysts for NOK10.2 billion.

Profit was also boosted by increased sales of oil and gas shipments and cost savings. The year-earlier quarterly result had been hurt by an unusually high effective tax rate. Earnings per share for the period was NOK2.25, compared to NOK0.63.

The higher net profit came despite revenue falling for the period to NOK122.6 billion from NOK149.8 billion a year earlier.

Statistics Norway announced on Wednesday that the consumer price index rose 2.5% year-on-year in January, faster than the 2% growth in the previous month. Economists had expected prices to rise by 2.1%.

The jump in inflation was mainly due to an increase in electricity costs, the statistical agency said. The housing, water, electricity & fuels component increased 2.4% in January.

On a monthly basis, consumer prices rose 0.2% in January - again missing expectations for a 0.2% fall, after the 0.2% growth in December.

Excluding volatile factors, consumer prices grew 2.3% on a yearly basis but fell 0.6% on a monthly basis- roughly in line with expectations.

Also the same day it was announced that On a monthly basis, consumer prices rose 0.2% in January - again missing expectations for a 0.2% fall, after the 0.2% growth in December.

Excluding volatile factors, consumer prices grew 2.3% on a yearly basis but fell 0.6% on a monthly basis- roughly in line with expectations.

FINLAND

Helsinki's OMX finished the trading day Friday at 6,436.12, a dip of 0.80%.

Finland-based listed shopping centre group Citycon sharply narrowed its net loss for 2009 to E37m from a deficit of E139m in 2008, and also cut its 4Q09 loss by 32% to E24m.

CEO Petri Olkinuora said net cash from operating activities and direct result per share were among the best in the company's history last year thanks to growth in rental income and lower interest costs.

"Citycon's financial position is stable and we have sufficient committed, non-utilised credit facilities to finance projects under construction," he said.

Finnish insurer Sampo Thursday said it would raise its dividend after posting a 77% fourth-quarter rise in its closely watched net asset value per share on rebounding mark-to-market values.

The Nordic region's largest property-and-casualty insurer said NAV per share rose to Eur14.63 from Eur8.28 a year earlier, above expectations of Eur14 and marking its highest result ever.

Net profit fell 3.3% to Eur148 million from Eur153 million a year earlier, beating analyst forecasts of Eur137 million.

The group proposed a dividend of Eur1 a share, up from Eur0.80 the preceding year, and said it would simplify its dividend policy to better match its peer group. It now plans to pay annual dividends of more than 50% of group profit, excluding extraordinary items, starting 2011. It previously paid an annual corresponding to a dividend yield of 4%-6%.

Chief Executive Officer Kari Stadigh said in an interview on the insurer's Web site that the new policy would be neutral for shareholders, with returns similar to those before.

Stadigh said he is "positive" on investment markets in 2010--Sampo increased its equity weight to 11% from 5% a year ago--but that the road to recovery will be bumpy given economic fragility and high unemployment.

Statistics Finland said on Friday that the trend indicator of the output of the national economy rose a seasonally adjusted 0.2% month-on-month in December.

On a yearly basis, output adjusted for working days fell 5.3% in December, slower than the 6.4% decline in the preceding month.

Finland's value of new orders in manufacturing rose 15.4% year-on-year in December. It follows 6.8% rise in November.

For the first time since summer 2008, new orders in manufacturing took a turn upwards in November, the statistical office said. In December, all main industries got on a growth track.

The strongest growth in the value of orders was seen in the metal industry where it was as high as 19.2%. In the chemical industry, orders went up by 13.7%. Orders grew by 8.4% in the manufacture of paper and paper products and by 1.4% in the textile industry.

In 2009 as a whole, new orders in manufacturing decreased 30.1% year-on-year.

Friday, Finnish building costs declined 0.4% year-on-year in January. The total index of building costs, however, rose 0.5% from December.

On a year-on-year basis, labor costs in the construction sector rose 3.4%, while price of materials fell 1.6% and those of other inputs were down 3.7%.

Labor costs recorded a monthly increase of 0.7% in January. Prices of materials grew 0.4% from December and those of other inputs rose 0.2%.

The total turnover generated by service industries in Finland fell 6.9% year-on-year in November.

During the three month period that ended in November, services turnover slumped 8.6% annually, faster than the 8.4% decrease in the three months to August period.

Turnover in transport and storage fell 15.9% during the period while turnover in professional, scientific and technical activities was 11.5% lower than in the same period of the previous year. On the other hand, turnover in arts, entertainment & recreation increased 5.3%.

Wednesday, the Statistics Finland announced that the industrial production dropped a working day adjusted 5.9% year-on-year in December, slower than the 18.2% fall in November, revised from 15.2% decline reported initially.

On a monthly basis, industrial output rose a seasonally adjusted 0.9% in December, at the same pace as in the previous month, revised from 1.3% increase estimated earlier.

For the whole year of 2009, industrial output decreased 20.9% from the previous year. The drop was the worst since Finland became an independent State, the statistical office said.

SPAIN

In Madrid the Ibex rounded out the week on 10,224.90, a drop of 0.55%.

Spanish group ACS is close to selling the Spanish port business of its subsidiary Dragados SPL to a JPMorgan infrastructure fund, though concerns about the port sector are hampering the deal, sources familiar with the matter said on Thursday.

Ports are seen as among the most vulnerable infrastructure assets in an economic downturn, with the recent crisis prompting many shipping lines to cut freight rates and capacity, even as the global economy starts to improve. [ID:nLB221630]

ACS is negotiating the sale of ports that account for about 90 to 95% of the earnings before interest, tax, depreciation and amortisation (EBITDA) of the Spanish business of Dragados SPL, three people familiar with the matter said.

Asked if there were plans to sell the Spanish port business of Dragados to JPMorgan, an ACS spokesman declined to comment. A JPMorgan spokeswoman also declined to comment.

Spain's consumer price index rose 1% in January from the last year, faster than December's 0.8% increase, a report from the National Statistics Institute showed Friday. However, prices dropped 1% on a month-on-month comparison. Both monthly and annual variations matched economists' expectations.

The Harmonized Index of Consumer Prices rose 1.1% annually in January. The statistical office confirmed the flash estimate released on January 29.

The Spanish economy remained in recession in the final quarter of 2009, data released by the government showed on Thursday.

Spain's gross domestic product decreased 0.1% quarter-on-quarter in the three months through December, the National Statistics Institute said. The result came exactly in line with analyst expectations and follows a 0.3% decrease in the September quarter.

The slowdown in contraction was the result of a less negative contribution of domestic demand and of the positive contribution of the overseas sector, the statistical office said.

The Spanish economy has now contracted for seven consecutive quarters and it remains the last major economy to still be mired in recession.

The National Statistics Institute said GDP slumped 3.1% compared to a year ago, roughly matching expectations after the 4% decrease in the preceding quarter.

Spain has the largest unemploment rate in the Eurozone at 20%, with some 44.5% of under 25s without a job.

The collapse of the property sector sparked Spain's recession, with the services sector also being weak. The government unveiled a number of stimulus measures to support the stricken economy and in the process racked up a massive budget deficit.

Spain's bulging deficit - estimated at 11.3% of gross domestic product in 2009 - has led some observers to question whether the country can repay its debts.

On Wednesday, Spanish Prime Minister Jose Luis Zapatero defended the solvency of the country, claiming the economy was "not worse than six months ago", and claimed the Iberian nation was "on the verge" of coming out of recession.

PORTUGAL

Lisbon's PSI General completed the week at 2,587.40, a decline of 0.79% on the day.

Portugal will not quit the Eurozone despite the difficult financial circumstances, the country's Finance Minister Fernando Teixeira dos Santos said in an interview with the BBC on Tuesday.

"We are very far from that scenario, I don't think the situation will lead to such an outcome," he told the BBC World Service's Business Daily programme.

Portugal's budget deficit was estimated at 9.3% of gross domestic product in 2009 - more than three times over what E.U. rules allow.

Teixeira dos Santos said the government was ready to cut-down on expenditure to control its bulging budget deficit and dismissed the possibility of the government needing a bailout to get out of its fix.

"I would not say yes to a bailout, because we have to make important reforms and corrections," said Teixeira dos Santos

"Such a kind of a bailout would look like some kind of anaesthesia that will not correct what we should correct. We have to face the public finance situation and correct it with our own efforts," he added.

Wednesday, the Statistics Portugal announced that the consumer price index or CPI rose 0.1% year-on-year in January, compared to the 0.1% fall in the previous month. A year earlier, the CPI was up 0.2%.

On a monthly basis, the CPI dropped 0.5% in January, in contrast to a 0.1% growth in the preceding month.

The annual core inflation rate, which excludes energy components and fresh unprocessed food products, dropped 0.6% in January, compared to the 0.2% fall in the previous month.

Meanwhile, the harmonized index of consumer prices rose 0.1% on an annual basis in January, after falling 0.1% in December.

Monday, the Statistics Portugal reported that exports dropped 3.6% in the last quarter of 2009 to Eur 8.14 billion. At the same time, imports declined 7.1% to Eur 13.26 billion, resulting in a trade deficit of Eur 5.12 billion. During the same period of last year, the trade deficit totaled Eur 5.84 billion.

ITALY

Italy's benchmark FTSE MIB lost 40.54, or 0.2%, to 21,035.91 in Milan, paring its gain for the week to 1.1%.

Banca Popolare di Milano declined 11 cents, or 2.5%, to 4.25 Euros. Bank stocks were among the worst performers in Europe after China's central bank said it will raise banks' reserve requirement ratio by 50 basis points. Banco Popolare SC (BP IM) declined 9 cents, or 2%, to 4.47 Euros. UniCredit SpA (UCG IM) dropped 3.2 cents, or 1.6%, to 1.92 Euros.

Buzzi Unicem declined 27 cents, or 2.8%, to 9.56 Euros, the lowest since July. Gruppo Banca Leonardo cut its price estimate on Italy's second-biggest cement maker to 11 Euros from 14 Euros. The brokerage kept a "buy" rating.

Davide Campari-Milano surged 37 cents, or 5.1%, to 7.64 Euros, the biggest gain in three months. Shares of the beverage company benefit from "its defensive characteristics and resilient growth," said Roberto Ruggiero, a fund manager at Banca Arner SpA in Milan.

Eni increased 18 cents, or 1.1%, to 16.65 Euros. Italy's largest oil company reported a profit in the fourth quarter after crude oil prices rebounded last year. The "results were above expectations both at operating and bottom-line level," Equita Sim SpA said in a note.

Eutelia gained 1.35 cents, or 4.7%, to 29.85 cents, ending a two-day decline. The provider of voice, data and Internet services said in a statement that it's not involved in a probe and denied any wrongdoing.

Fiat fell for a second day, losing 25 cents, or 3.1%, to 7.75 Euros. Automobile stocks were the worst performers in Europe Friday. "Momentum is turning negative on the car sector due to the lack of visibility on the second half," Kepler Capital Markets wrote in a note.

Separately, Sal. Oppenheim Jr. & Cie. reiterated a "reduce" rating on the Italian carmaker.

Gruppo Coin climbed 4.75 cents, or 1.1%, to 4.24 Euros, erasing Thursday's loss. Deutsche Bank AG lifted its price estimate on Italy's largest clothing distributor to 6.5 Euros from 4.7 Euros. The brokerage reiterated a "buy" recommendation.

Indesit declined 32 cents, or 3.4%, to 9 Euros, a first loss this week. Equita Sim SpA downgraded the maker of Hotpoint stoves and refrigerators to "hold" from "buy" and removed the stock from its "small caps portfolio."

Shares of the tiremaker Pirelli fell for a second day, fell 0.55 cents, or 1.4%, to 37.65 cents. Michelin & Cie. Chief Executive Officer Michel Rollier said in an interview that conditions are too volatile for the company to set a date for meeting its medium-term objective for an operating margin of 10%.

Saipem, Europe's largest oilfield-services provider, lost 18 cents, or 0.7%, to 24.79 Euros, ending a three-day gain. Oil fell in New York for the first day in five.

Tenaris, the world's largest maker of seamless pipes used to extract oil and gas, declined for a second day this week, losing 17 cents, or 1.1%, to 16.04 Euros.

Snam Rete Gas rose for a third day, adding 3.75 cents, or 1.1%, to 3.45 Euros. Eni SpA has "no urgency" to find an alternative position on Italy's gas- distribution network operator, Chief Executive Officer Paolo Scaroni said on a conference call Friday.

Scaroni also said "any potential disinvestment" of Snam should be reviewed first by the Italian parliament. He said he isn't "dogmatic" on keeping the gas-distribution network.

GREECE

The Athex in Athens brought the week to a close on 1,899.42, a Friday drop of 2.11%.

Thursday, the General Secretariat of the National Statistical Service of Greece said the jobless rate rose to 10.6% in November from 9.8% in October. A year ago, the jobless rate stood at 7.8%.

The number of unemployed people increased 40,814 persons from October and by 146,965 from the previous year. Meanwhile, the number of employed decreased by 40,870 from October to 4,464,230.

Wednesday, Moody's Investors Service reiterated the need for risk differentiation among the three southern European nations, Spain, Portugal and Greece, whose public finances are under market scrutiny. The agency also warned that Greece faces a risk of further downgrade if the government fails to stick to its plans to cut debt.

In a new report titled "Spain, Portugal & Greece: Contagion or Confusion?", Moody's said only Greece faces material challenges. "Spain, Portugal and Greece may share the same currency, but they do not display the same credit profile," said Kristin Lindow, Senior Vice President in Moody's Sovereign Risk Group.

The ongoing concerns over the ability of the three countries to roll over their existing debt and finance their ongoing budget deficits have so far not been substantiated by hard evidence, the rating agency noted. That said, market spreads in Spain, Portugal and Greece now suggest much larger credit risk differentiation than is indicated by their ratings, it added.

Spain currently holds a Aaa rating with a stable outlook. Portugal has Aa2 ratings with negative outlook. Greece's ratings were cut to A2 from A1 in December and assigned a negative outlook.

Further, Moody's pointed out that fears that the borrowings of these countries may be quantity- rather than price-constrained are exaggerated. The agency viewed Spain's Aaa rating to be well anchored, while sees Portugal's rating as subject to some moderate downward pressure as illustrated by the negative outlook. However, it noted that these situations are not directly comparable to that of Greece.

Repeating its earlier assessment, Moody's said Greece's ambitious government plans could, if implemented as promised, stabilize the country's rating. "A flawless execution of the ambitious program announced by the Greek authorities and monitored by the EU Commission would go a long way to alleviating short-term as well as long-term concerns," Lindow said. "A material deviation from such commitment would lead Moody's to downgrade the rating, which currently has a negative outlook."

Japanese stocks rose for a second day as companies from Asahi Glass Co. to Pacific Metals Co. forecast higher earnings, overshadowing concern that Greece's mounting deficit will derail a recovery in the European economy.

Asahi Glass, Japan's No. 1 glassmaker, jumped 6.9% after forecasting a surge in annual profit. Pacific Metals, the country's top ferro-nickel producer, and GS Yuasa Corp. gained at least 7.3% after boosting their projections. Mitsui & Co., which counts commodities as its biggest source of profit, climbed 5.6% after oil and copper gained.

The Nikkei 225 Stock Average rose 1.3% to close at 10,092.19 in Tokyo. The broader Topix index added 1% to 892.16, with twice as many stocks advancing as falling. Japan's markets were closed for a holiday Thursday, when the MSCI Asia Pacific excluding Japan Index climbed the most since Feb. 3.

For the week, the Topix was little changed after having posted three consecutive weekly slumps. The daily value of stocks traded in Tokyo this week has been less than the one-year average, as investors waited to see whether the European Union would seek to help Greece manage its budget deficit.

Asahi Glass soared 6.9% to 946 Yen, sending its peers to the biggest gain among the Topix's 33 industry groups. The company said on Feb. 10 that net income will increase more than fourfold this year as demand recovers in emerging markets.

Pacific Metals surged 7.3% to 617 Yen, after lifting its net-income forecast 24% for the year to March 31. GS Yuasa, Japan's first maker of lead storage batteries, rallied 9.7% to 598 Yen after the company boosted its full-year earnings projection by 40% owing to sales growth in China and Southeast Asia. GS Yuasa and Pacific Metals were the biggest and third-biggest winners on the Nikkei 225.

Mitsui, Japan's second-biggest trading company by market value, climbed 5.6% to 1,350 Yen. Bigger rival Mitsubishi Corp., which gets 39% of its sales from commodities, added 3.3% to 2,225 Yen. Trading companies as a group were the biggest contributors to the Topix's advance.

Copper futures for March delivery surged 4.8% in New York Thursday, the most since Aug. 21. Crude oil for March delivery gained 1% to $75.28 a barrel, the highest level since Feb. 3.

Consumer lenders slumped after the Nikkei newspaper reported the scheduled implementation of the new law in June that limits total borrowing from consumer lenders to a third of a borrower's annual income will shrink demand. Aiful Corp. sank 6.6%, while Promise Co. dropped 7%.

SOUTH KOREA

Seoul shares slipped on Friday, led by techs and banks, with Hynix falling ahead of a deadline for preliminary bids, but Hanwha Securities rallied after it agreed to buy the units of Prudential Financial.

The Korea Composite Stock Price Index (KOSPI) ended down 0.26% at 1,593.66 points.

Shares in Hanwha Securities rose 4.45% after Hanwha Group said South Korean brokerage Hanwha Securities signed an agreement on Friday to buy the two domestic units of US insurer Prudential Financial Inc.

But Hynix Semiconductor fell 1.59% amid worries that no bidder may submit a letter of intent by the preliminary bid deadline.

Its lead shareholder, Korea Exchange Bank, said after the market's close on Friday that Hynix has received no fresh bids for the firm.

Other key technology issues turned lower following their recent strong gains.

Shares in Samsung Electronics, the world's No.1 memory chip maker, fell 1.7%, and LG Display, the world's No.2 maker of LCD screens, lost 2.12% following three consecutive rising sessions.

Meanwhile, retail issues also slipped.

Lotte Shopping Co Ltd lost 1.56% and Shinsegae Co Ltd shed 0.6%.

Shinsegae said late on Thursday its January sales fell 6.6% from a year ago.

HONG KONG

Hong Kong shares ended marginally easier on Friday, snapping three straight sessions of gains, as investors took profit ahead of the Lunar New Year holiday, while China stocks rose on optimism about the near-term trend as concerns over policy tightening eased.

The benchmark Hang Seng Index ended down 0.11%, or 22 points, at 20,268.69. The index ended the week 3.07% up, its biggest weekly gain in percentage terms in the past 10 weeks. The China Enterprises Index .HSCE of top locally listed mainland Chinese stocks was down 0.40% at 11,536.36.

Investors took to the sidelines ahead of details of a bail-out plan for debt-laden Greece and that sent HSBC, the most actively traded stock, down 0.74% to HK$80.75.

ICBC, China's largest lender, rose 1.1% to a week high at HK$5.66, before the stock trimmed gains and ended down 0.36% at HK$5.58.

Market turnover fell to HK$45.67 billion ($5.9 billion), the lowest so far this year, from Thursday's HK$52.94 billion.

Commodities stocks eased as investors locked in gains after their recent strength fuelled by news about the support plan for Greece.

Shares of Sinopec fell 1.7% to a session low of HK$5.88 after a 2.2% rise the previous session, its biggest percentage gain since Dec. 14. The stocks ended at HK$5.92, still down one%.

PetroChina also closed 0.81% down after a two% gain on Thursday when the stock ended at its highest close in a week.

CITIC 1616 rose 4.3% to HK$2.40 its highest since Jan. 15, after the telecommuncations service firm said it would buy a stake in Macau's mobile operator Companhia de Telecomunicacoes de Macau for HK$1.4 billion ($180 million). The stocks ended up 3.9%.

Casino stocks outperformed the market with NagaCorp, which operates a casino in Cambodia, surging 3.5% to its highest close in more than a month, after it said it expected revenue in 2010 to grow by 30% with future growth to be driven by rising Chinese visitors.

Sands China, the Macau unit of Las Vegas Sands, climbed 3.97%.

CHINA

China's stocks rose, driving the benchmark index to its biggest weekly gain this year, as easing inflation delayed prospects for higher interest rates and signs of increasing demand for raw materials boosted miners.

Jiangxi Copper Co., the nation's biggest producer of the metal, climbed 3.3% as copper prices jumped the most since August Thursday. China Shenhua Energy Co., the largest coal producer, rose 0.9% after sales and output increased last month. Changchun Department Jituan Store Co. led gains by Chinese retailers on the prospect of increased consumer spending during the Chinese Lunar New Year festival.

The Shanghai Composite Index gained 32.64, or 1.1%, to 3,018.13 at the close. The gauge climbed 2.7% this week, the most since the last week of December, after domestic auto sales expanded and inflation slowed in January. The CSI 300 Index, measuring exchanges in Shanghai and Shenzhen, gained 1% to 3,251.28. The nation's markets will be closed next week for the Lunar New Year.

Shares worth 64.9 billion RMB ($9.5 billion) changed hands on the Shanghai stock market Thursday, a sixth day of declines, according to data. That's the lowest since March 16.

Consumer prices climbed 1.5% from a year earlier, down from 1.9% in December, as food costs rose more slowly, the statistics bureau said Thursday.

Speculation about further tightening in the short term will ease, wrote analysts led by Yu Jun at Citic Securities Co. in a report Friday. China's stock market is likely to fluctuate in the first half of 2010 as the withdrawal of stimulus policies weighs on liquidity and sentiment, according to the report.

Commodity prices gained after China's lending surged to 1.39 trillion RMB in January, according to government data Thursday. China is the world's biggest user of industrial metals. Prices were also boosted by a report that showed US initial jobless applications dropped to the lowest level in five weeks.

Copper futures for March delivery surged 4.8% to $3.1335 a Pound in New York Thursday, the biggest gain for a most-active contract since Aug. 21. Gold added 1.7%, the most in more than a week, and crude oil rose 1%, a fourth day of gains.

Shenhua climbed 0.9% to 29.43 RMB after saying coal sales rose 25% to 24.1 million metric tons in January from the same period last year while production gained 10% to 19.4 million tons.

Baoshan Iron & Steel Co., China's biggest steelmaker, gained 2.4% to 8.02 RMB after increasing prices for March delivery as much as 7.4%. The stock rounded up a 9.3% gain this week. That's the biggest weekly advance since the period through Dec. 4.

Property prices in 70 cities climbed at the fastest pace in 21 months in January and lending topped the previous three months combined, government reports showed Thursday.

The People's Bank of China will "gradually guide monetary conditions back to normal levels from the counter-crisis mode," it said in a quarterly monetary policy report Thursday. The previous report didn't refer to ending an emergency stance.

The prospect that China will raise interest rates to cool growth in the world's third-largest economy and avert asset bubbles has dragged the Shanghai Composite down 7.9% this year. The gauge surged 80% in 2009 as a record credit boom and government stimulus spending drove the economic recovery.

China's gross domestic product expanded 10.7% last quarter from a year earlier, the fastest pace since 2007.

Changchun Department jumped the 10% daily cap to 8.17 RMB, the most since July 7. Hainan Zhuxin Investment Co., which operates the Hainan No. 1 Department Store, advanced 5% to 10.57 RMB.

GF Securities was by far the biggest gainer of the day, rising nearly five-fold to 50.05 RMB after achieving a "backdoor listing" by acquiring Yanbian Road Co, whose shares were suspended from trading since October 2006. The benchmark index gained 64% during that period.

TAIWAN

The market in Manila was closed Friday for a Public Holiday.

THE PHILIPPINES

The local stock market rose sharply on Friday tracking gains made overnight by its US counterpart after the European Union stepped in to stabilize fiscally troubled Greece.

The Philippine Stock Exchange index rose 40.77 or 1.4%, bringing it to 2,949.65 by the end of trading.

Trading was relatively heavy with 1.7 billion shares changing hands by the end of the session, worth P3.2 billion.

Advancers swamped decliners 94 to 23, with 52 shares remaining unchanged.

Metropolitan Bank and Trust Co. was the top traded issue, accounting for 12.61% of total transactions for the day. It was followed by PLDT, whose trades accounted for 11.32%.

Metrobank closed at P40.50 per share, up by P1.50, while PLDT ended the session at P2,530, up by P10.

Mining stocks led the charge with the mining index rising 2.3%.

SINGAPORE

The shares prices in Singapore rose 5.27 points or 0.19% on Friday with the benchmark Straits Times Index (STI) closing at 2,758.90 points.

The overall volume stood at 1.21 billion shares worth 1.13 billion Singapore Dollars (about 801.4 million US Dollars).

Among advancers in Singapore, CapitaLand gained 1.8% and Noble Group rose 1.7%.

MALAYSIA

Trading on the Bursa Malaysia stayed relatively quiet on Friday, Feb 12, ahead of the long Chinese New Year holidays. The stock exchange will be closed Monday and Tuesday.

Trading volume dwindled further - to just 560 million shares on Friday from Thursday's already low level of 646 million shares.

Some investors are already away for the long break. Other investors preferred not to enter the market aggressively, so as to not expose themselves to Wall Street's volatility and external risks. Upon resumption of trading after a long break, the stock market tends to adjust itself depending on how Wall Street and regional markets fared.

The FBM KLCI was in positive territory throughout the day, ending the day up four points at 1,253.4. Market breadth was positive, with advancing stocks beating declining ones by a three-to-one margin.

Actively traded stocks include Talam, KNM, LCL and Axiata. Gainers include Hai-O, PPB, Daiboci and 3A Resources. The losers were mostly smaller stocks, which fell on thin volume.

Alliance Financial Group Bhd recorded a higher pre-tax profit of RM131 million for the third quarter ended Dec 31, 2009 following a lower allowance for losses on loans and financing.

For the nine months period, the group recorded a pre-tax profit of RM301.5 million compared to the RM297.6 million registered in the same period of 2008, primarily due to the recovery of a corporate loan as well as reduction of the general allowance rate to 1.5%.

In a statement here on Friday, its chairman Datuk Oh Chong Peng said the group was optimistic about the current year prospect, following an improvement in the Malaysian economy.

The ringgit closed better against the US Dollar on Friday. The local unit was traded at 3.4160/4190 against the greenback compared with 3.4250/4300 Thursday.

INDONESIA

Indonesian shares were closed higher on Friday, supported by mining shares.

The market index was closed 44.1 points, or 2.07% higher to 2,168.934 with transaction volume of 4.279 billion shares worth 3.068 trillion rupiah (about 327.6 million US Dollars).

In Jakarta, shares in PT XL Axiata, Indonesia's third-largest mobile phone operator, jumped 7.7% after the company reported strong earnings.

Bakrieland Development rose 2.2%, with broker BNI Securities advising the stock a a "buy" on expectations the firm's plans to develop property around the Kanci-Pejagan toll road in Java will support growth.

THAILAND

The SET in Bangkok closed up 0.38% Friday and ended at 698.03.

Some 1.41 billion shares worth 12.39 billion baht (about 375.45 million US Dollars) changed hands.

Shares in Advanced Info Service, Thailand's top mobile phone operator, rose more than 6% to a three-month high on Friday after the company announced a special dividend.

AIS, 21.4% owned by Singapore Telecommunications, said it planned a special dividend for 2009 of 5 baht per share, on top of the 6.3 baht normal dividend for the full year. [nID:SGE619063]

Based on prices at the midday close, that represented a dividend yield of about 13%.

INDIA

Indian markets were closed Friday for a local holiday.

AUSTRALIA

The Australian share market closed mildly higher Friday after rising resources stocks outweighed weakness among the banks.

The benchmark S&P/ASX200 index closed up 7.8 points, or 0.17%, to 4,562.1 points, while the broader All Ordinaries index gained 13 points, or 0.28%, to 4,588.8 points.

On the Sydney Futures Exchange at 1615 AEDT, the March share price index contract was four points higher at 4,526 on 25,953 contracts.

Shares in mining giant Rio Tinto were up $2.22, or 3.18%, to $71.94, after investors liked the company's 2009 full year earnings report released Thursday evening.

BHP Billiton rose 47 cents to $40.82, while Fortescue put on 18 cents to $4.93.Among the gold miners, Lihir was steady at $2.86 and Newcrest gained 24 cents to $32.68.

Newcrest said Friday it was considering bringing in a partner for the O'Callaghans tungsten deposit near its flagship Telfer gold mine in Western Australia.

Gold producer Ramelius Resources fell 1.5 cents to 60 cents after failing in its takeover bid for Dioro Exploration NL.

Shares in Dioro were down one cent, at $1.235.

At 1622 AEDT, the spot price of gold in Sydney was $US1,089.40 per fine ounce, up $US11.20 from Thursday's closing price of $US1,078.20.

The big banks were mainly weaker, with Commonwealth Bank down 70 cents to $52.30, National Australia Bank off 28 cents to $24.40, ANZ off 16 cents to $20.59 but Westpac bucked the trend, rising 23 cents to $23.20.

Westpac Friday received approval to form a single authorised deposit-taking institution with wholly owned subsidiary St George Bank.

Macquarie group fell 38 cents to $47.35.

Telstra shares fell 10 cents, or 3.11%, to $3.12, which came on top of share price losses on Thursday when the telco announced a drop in first half profit.

Construction giant Leighton Holdings upgraded its annual earnings guidance after more than doubling its first half profit, but its shares fell $1.01, or 2.64%, to $37.29.

Energy stocks were mainly higher, with Oil Search up six cents to $5.30, gas giant Santos rising 10 cents to $13.35 and Origin Energy was 16 cents stronger at $16.40.

Woodside Petroleum lost a little ground, falling 20 cents to $42.80.

Retail stocks were mainly stronger, with whitegoods and electronics retailer Clive Peeters flagging a better than expected first half result.

Shares in Clive Peeters were up three cents to 40 cents.

Coles owner Wesfarmers rose 72 cents to $29.03 and supermarket rival Woolworths gained 17 cents to $25.55.

Among upmarket retailers, Myer put on two cents to $3.38 and David Jones was steady at $4.84.

The media sector reported some gains, with News Corp rising 35 cents to $17.32 and its non-voting scrip up 23 cents to $14.70.

Fairfax put on one cent to $1.75 and Consolidated Media strengthened two cents to $3.02.

At 1637 AEDT the top-traded stock by volume was Samson Oil and Gas Ltd, with 208.44 million shares worth $5.78 million changing hands.

Its shares were up 0.4 cents, or 16.67%, at 2.8 cents.

Preliminary national turnover was 2.49 billion shares worth $5.35 billion, with 654 stocks up, 393 down and 322 unchanged.

NEW ZEALAND

New Zealand shares ended higher Friday despite a fall by heavyweight bellwether, Telecom Corp., which declined after its second quarter result.

The NZX-50 Index rose 0.5%, or 15.20 points, to 3,080.47, and over the week was flat.

Telecom fell 0.4% to NZ$2.30 having initially risen on its result despite its full year net profit guidance being lowered to the lower end of the previous range.

Lee and other analysts said the effective downgrade had been expected and the numbers were largely in line. He said many uncertainties, such as its participation in the national fast broadband plan, remain for the stock.

Goldman Sachs JBWere broker Peter Sigley said that despite technical problems with its new mobile network, Telecom appeared to be outstripping rival Vodafone "quite nicely" in new mobile sign-ups, while reasonable progress had been made by the company in containing costs.

Citi analyst Phil Campbell said while Telecom shares remained "cheap", the company still faced several challenges including the slow economy, brand damage from mobile network outages and its exposure to a more competitive telecommunications landscape through Australian unit AAPT.

Retail stocks were largely unscathed by much weaker than forecast retail sales data in the crucial Christmas period.

Indeed, outdoor goods retailer Kathmandu was actually the top gainer, with a 4.2% to NZ$1.98. Lee attributed the gain to weakening of New Zealand against the Australian Dollar, ironically on the retail sales figures.

Pike River Coal rose 3.4% to NZ$0.92 on strengthening global commodity prices.

Market heavyweight Fletcher Building rose 1.2% to NZ$7.54 to underpin the market, reversing recent weakness.

That had been spurred most recently by a weak profit report Thursday by Steel & Tube that continued to weigh on that company as it lost a further 3.5% to NZ$2.60.