Madrid shares close lower, off session lows; Ferrovial leads losses

(Updates with full report) MADRID (Thomson Financial) - Share prices closed lower but off session lows, though the IBEX-35 index still failed to claw back above the key 14,000 level, with Ferrovial leading losses. The IBEX-35 index ended down 128.90 points at 13,945.10, after trading in a range of 13,843.90 to 14,015.20.

Equities opened lower on the back of a weak close in Asia as oil prices hit new highs, extending losses over the morning in light trade.

Ferrovial led the losers, dropping 3.00 euros or 5.29 percent to 53.75, on concerns that the planned refinancing of around 10 billion pounds of its BAA unit's debt could be delayed.

In a note after the market close, Ferrovial's CFO Nicolas Villen attempted to play down the concerns and said that the group continues with its refinancing plans. "The process is very advanced in all areas, from the final documentation to the receipt of positive ratings," Villen said.

Telefonica was off lows, down 0.05 at 19.10, after it said it has accepted Prisa's 28 euros-per-share offer for the 16.79 percent stake it holds in Sogecable. Prisa shed 0.20 to 11.04, while Sogecable rose 0.01 to 27.95. Santander slipped 0.16 to 14.01, depressed by reports that its Sovereign affiliate in the U.S. is planning a $1 billion capital hike, some or all of which is likely be subscribed by the Spanish bank.

Other financials were on offer, with BBVA down 0.11 at 15.01 and Popular off 0.12 at 11.21, while insurer Mapfre added 0.13 or 3.81 percent to 3.54, with dealers citing an upgrade by Cheuvreux.

Gas Natural was down 0.87 or 2.29 percent at 37.04 as M&A hopes once again lost steam after the company reiterated that it is not studying any deals in Spain.

Merger candidate Iberdrola was off 0.05 at 9.36.

Utility peer Endesa rose 0.49 to 31.00, ahead of first-quarter earnings on Monday. Iberia lost 0.09 or 3.60 percent to 2.41 on concerns of rising oil prices on fuel costs.

Repsol YPF slipped 0.26 to 26.35. Prosegur was down 0.68 or 2.31 percent at 28.75 after Deutsche Bank downgraded the stock to 'hold' from 'buy' on valuation grounds, while reiterating its 31.9 euros price target.

Among other small-mid caps, Agbar slumped 2.86 or 10.21 percent to 25.14, on profit-taking after news that it will not enter the MSCI global index. Hopes that it would be selected for the index led the stock to heavy gains earlier this week.

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