Share prices closed higher, tracking the international trend on the recent lower oil price, with leaders including Seat PG on company comments on cutting its debt, and Pirelli (Milan: PC.MI - news) up on its firm second-half outlook, brokers said.
The Mibtel index rose 2.72 percent to 21,955 points and the S&P/Mib was up 3.33 percent to 28,753.
Volume traded was an estimated 3.680 billion euros.
Brokers said the lower oil price is prompting a switch by investors into bank stocks, out of oil stocks, reversing a major trend seen in the last year because of the credit market crisis.
One broker said it is unclear how far the oil price will fall, adding that $115 a barrel could prove a resistance to further falls with the price even rebounding upwards again.
Seat PG rose 6.86 percent to 0.081 euros. Brokers said the stock was extending Monday's gains on weekend comments by CEO Luca Majocchi that the company will meet full-year targets and is mulling asset sales.
Brokers said the market is appreciating Seat PG's early redemption of debt, which is a worry, while competing with Google (NASDAQ: GOOG - news) on local advertising is less of a factor in the upcoming business plan.
Mondadori (Milan: MN.MI - news) gained 5.48 percent to 3.9975. L'Espresso rose 1.43 percent to 1.635.
Other gainers included Italcementi (Milan: IT.MI - news) , up 7.65 percent to 9.005, bouncing after recent weakness on its poor results last week. Buzzi Unicem (Milan: BZU.MI - news) added 5.98 percent to 13.83.
Autogrill (Milan: AGL.MI - news) gained 8.69 percent to 8.32, accelerating late in the session.
Atlantia (Milan: ATL.MI - news) was up 0.44 percent to 17.08 ahead of Tuesday evening's results. One broker said smaller motorway peer SIAS (Milan: SIS.MI - news) announced on Tuesday 'decent' traffic trends, which should also be seen in Atlantia results.
SIAS added 1.19 percent to 7.21.
Pirelli was up 7.48 percent to 0.421 after the company announced results.
Brokers said the market reacted to Pirelli's second-half guidance, while first-half EBIT of 190.3 million euros was ahead of Deutsche Bank (Frankfurt: DB9999 - news) 's expectation for 177.3 million on this line.
One analyst said a write-down on Pirelli's remaining stake in Telecom Italia (Milan: TIT.MI - news) to 1.27 euros per share, the price at June 30, was already discounted by the market. Telecom Italia gained 4.06 percent to 1.154.
The Pirelli RE unit was up 10.20 percent to 14.65 after yesterday's results and conference call this morning.
Among other industrials, Fiat (Milan: F.MI - news) gained 5.06 percent to 10.96 and Prysmian lost 0.79 percent to 15.04.
Among luxury stocks, Luxottica (Milan: LUX.MI - news) gained 6.42 percent to 16.27. Brokers said the stock reacted to company statements on management remaining in place. Geox (Milan: GEO.MI - news) rose 3.63 percent to 7.28.
Banks were mostly on the positive side. Mediolanum (Milan: MED.MI - news) gained 6.34 percent to 2.87. Intesa Sanpaolo (Milan: ISP.MI - news) was up 6.01 percent to 3.83.
One broker said he was surprised that Intesa did not react more negatively to the Societe Generale (Paris: FR0000130809 - news) results, which he said showed weakness in retail banking. Overall, SocGen's results were in-line or above expectations.
Unicredit (Milan: UCG.MI - news) rose 5.87 percent to 3.9575, bouncing after weakness on last week's results.
Energies were lower. Saipem (Milan: SPM.MI - news) fell 1.71 percent to 23.01, Snam RG was down 1.85 percent to 4.135 and Tenaris (Milan: TEN.MI - news) lost 1.18 percent to 18.36. Eni (Milan: ENI.MI - news) eased 0.38 percent to 20.97.
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