European shares close flat; banks down, miners up

LONDON, March 29 (Reuters) – European shares closed flat on
Tuesday, with Italian lender UBI Banca (UBI.MI: Quote, Profile, Research) leading banks
lower after a capital hike, but with miners higher after copper
prices recovered from falls.

The pan-European FTSEurofirst 300 (.FTEU3: Quote, Profile, Research) index rose 0.04
percent to a provisional close of 1,125.91 points.

UBI Banca shed 12.4 percent as its 1 billion euro capital
increase took investors by surprise and prompted speculation
peers could be heading down the same route. [ID:nLDE72S0JR]

Intesa SanPaolo (ISP.MI: Quote, Profile, Research) and UniCredit (CRDI.MI: Quote, Profile, Research) fell 4.5
and 3.7 percent respectively.

“Banks, especially European banks, are going to have to
raise significant volumes of capital. They will continue to
underperform,” said Bob Parker, senior adviser at Credit Suisse,
who is “underweight” on the sector.

Miners rose as copper prices received from earlier falls,
with heavyweights in the sector to rise including Anglo American
(AAL.L: Quote, Profile, Research), BHP Billiton (BLT.L: Quote, Profile, Research) and Rio Tinto (RIO.L: Quote, Profile, Research), up between
2 and 2.2 percent.
(Reporting by Brian Gorman)

European shares close flat; banks down, miners up