European shares close lower as banks weigh

European shares fell yesterday, led lower by the banking sector, with Greece's largest lender National Bank (NBG) slipping six per cent before a post-market results statement.

The pan-European FTSEurofirst 300 index of top shares closed down 0.1 per cent at 1,069.69 points, after trading in a range of 1,067.06-1,073.73 points.

"Given the decent run we have seen over the last couple of weeks, markets have become a little exhausted," said Gerhard Schwarz, head of global equity strategy at UniCredit.

"The market is waiting for new significant factors. Over the next few days there might be more scrutinizing over the Greece situation."

Banks took the most points off the index with lingering concerns over Greece's economic situation adding to market worries. Greek bank shares fell following a media report that the country may turn to the IMF to deal with its debt crisis.

Greece's Finance Minister later dismissed the report and said all options for getting support were still open.

After the market close National Bank of Greece released annual results which showed a 40 per cent fall in its net profit to €923 million.

Across Europe, the FTSE 100 index was down 0.04 per cent, Germany's DAX fell 0.2 per cent and France's CAC 40 slipped 0.5 per cent.

HSBC, Banco Santander, Barclays, BBVA and UBS fell 1.7 to 1.9 per cent.

Miners were lower as copper prices fell 0.9 per cent on a firmer dollar.

Antofagasta, BHP Billiton, Eurasian Natural Resources Corporation, Rio Tinto and Xstrata slipped 0.6 to 1.7 per cent.

Drugmakers added the most points to the index. Roche rose 0.6 per cent after it said it sees blockbuster sales for at least seven experimental drugs.

GlaxoSmithKline gained 3.9 per cent after Novartis handed back US rights to a drug widely believed to be a generic version of the company's lung blockbuster Advair.

Novartis was up 0.7 per cent.

The personal goods sector was in demand. Adidas gained 3.3 per cent after peer Nike, the largest global sports gear maker, beat Wall Street expectations in its third quarter.

Luxury good makers were higher after demand for Swiss watches rose for a second straight month in February.

Swatch Group and Richemont were up 2.2 and 1.8 per cent respectively.

Energy stocks were in demand. British gas producer BG Group rose 1.5 per cent on market talk of Exxon Mobil's interest in the company, traders said. BG Group declined to comment on the talk. Exxon was not immediately available for comments.