Shares of Italian active in Libya rise

The shares of Italian companies active in Libya, such as energy giant Eni and technology company Ansaldo STS, soared on Monday by over five percent as rebels overran the capital Tripoli. Ansaldo STS, a subsidiary of industrial group Finmeccanica which specialises in railway and telecommunication infrastructure and had large contracts in Libya before the conflict, shot up 5.73 percent in mid-morning trade. "Ansaldo STS had to cancel two large contracts worth a total of 660 million euros because of the conflict and had been forced to revise down its targets for 2011 and 2012," said analyst Enrico Coco from investment bank Banca Leonardo. "The markets seem to be betting on the situation returning to normal and the contracts being picked up again," he said. Oil major Eni, which was the biggest foreign energy producer in Libya before the conflict, saw its shares climb 5.05 percent to 13.11 euros. "Eni was one of the biggest operators in Libya, where it produced 17 percent of the total production," analyst Anne Pumir from Natixis Securities said. "It's one of the petroleum stocks which has suffered the most since the start of the year," she said, adding: "It's now picking up because the situation in Libya is getting better." Libya's former colonial ruler, Italy enjoyed strong economic ties with Kadhafi and was the country's top trade partner before the start of the conflict in mid-February. As the country's biggest exporter -- with 17.5 percent of the market -- and 180 businesses on the ground, Italy's economic interests were hit hard by the uprising. Milan's benchmark FTSE Mib index, boosted by the soar in shares, was up 2.54 percent by mid-morning as the Libyan lead encouraged investors after weeks of turmoil sparked by fears over Italy's weak economy and debt problems.