Glance-STOCKS NEWS EUROPE-EasyJet nosedives on Stelios, outlook
Nov 18, 2008 (XFN via COMTEX) -- By Staff Reporter
STOCKS NEWS
Reuters
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09:42GMT 18Nov2008-EasyJet nosedives on Stelios comments, outlook
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Shares in low-cost carrier easyJet crash more than 15 percent as the airline says founder and 27 percent shareholder Stelios Haji-Iannou has refused to approve the group's full year accounts, while the outlook for the carrier continues to be bleak despite a forecast for profitability in 2009.
"It's a combination of things. The Stelios comments create uncertainty, but there is also concern over the cost inflation and current trends of a consumer downturn while fuel is locked in at a high level," says Collins Stewart airline analyst Andrew Fitchie.
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09:36GMT 18Nov2008-Asterand up on placing; Daniel Stewart "buy"
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Shares in Asterand climb 16.7 percent after the provider of human tissue-based services to pharmaceutical companies announces it has completed the
placing of 4.3 million ordinary shares at 15 pence each, prompting Daniel Stewart to repeat its "buy" recommendation.
Asterand says the shares have been placed with an existing shareholder, Chrysalis Venture II, taking its shareholding to 17,335,457 or 15.1 percent of the total outstanding shares.
The placing raises 645,000 pounds, which provides Asterand with further capital to accelerate near-term growth opportunities.
Daniel Stewart repeats its 22 pence target price and says it believes, as does Chrysalis, that Asterand trades at a significant discount to its fair value.
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09:42GMT 18Nov2008-Wacher Chemie falls as US peer MEMC cuts guidance
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Shares in Wacker Chemie fall 15.6 percent, coming under pressure after U.S. rival MEMC Electronic Materials Inc cuts its fourth-quarter revenue outlook, citing weak semiconductor and solar markets.
"This should have a negative read-across for peer Wacker Chemie," says a Frankfurt-based trader.
"After hours, MEMC (shares) only lost 0.5 percent. We think this is mainly due to (MEMC's) sharply cut expense guidance," the trader adds.
"The guidance cut is definitely hurting sentiment," a second trader says.
Analyst Peter Spengler at DZ Bank was less convinced that the forecast revision would have a long-term affect on Wacker.
"The sales warning of MEMC shows that solar market demand is deteriorating,"
Spengler says.
"MEMC has a different sales policy and market structure than Wacker. In general, MEMC is more focused on the short term spot market," he adds.
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09:39GMT 18Nov2008-Premier Foods down as it pays to defer covenant test
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Shares in Premier Foods fall as much as 18 percent after the food manufacturer says it has paid its lending banks a fee of 4.9 million pounds ($7.37 million) to postpone a test of its banking covenants.
Citigroup says this is a "clear marker that expensive banking negotiations lie ahead".
Premier also scraps its previously announced interim dividend payment of 2.2
pence per share as it grapples with debt of over 1.7 billion pounds.
Collins Stewart analyst Rob Mann says there is "no quick fix solution".
"Asset sales are undesirable and equity issuance at current levels still more so. Passing the dividend, convincing lenders of the robust outlook and the flow through of synergies in 2009 and negotiating more relaxed near-term covenants: this is the only way out," he says.
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09:32GMT 18Nov2008-Insurer FBD slides, guides below consensus
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Shares in Irish insurer FBD drop 20.7 percent after it warns that full-year earnings would likely come in 10 percent below the current consensus range of broker forecasts.
"It appears that this has been driven by a higher than anticipated claims line in H2 -- due to 'continuing poor weather and increasing costs of property claims'-- and the impact of challenging market conditions for the non-underwriting businesses," Goodbody analyst Anna Lalor says.
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09:23GMT 18Nov2008-Rexam higher after reassuring update
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Shares in Rexam gain 2.3 percent after a reassuring interim management statement (IMS) from the world's leading beverage cans manufacturer.
Citigroup points out that Rexam's IMS, covering the 4 months to end October 2008, talks of trading being in line with expectations and an unchanged outlook for overall 2008 results.
The broker notes that this view is after a slightly larger positive impact from currency translation, which Citigroup estimates at 5-10 million pounds, than at the time of July's interim results, which should leave the company on track to reach market estimates.
Citigroup says it sees slower European growth in the second half of 2008 and
U.S. consumer factors as key issues, but notes that both can and plastic packaging volumes are defensive relative to other parts of the economy.
The broker repeats its "hold" rating and 400 pence target for Rexam.
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09:14GMT 18Nov2008-Hypo Real slides; UniCredit sees no end to problems
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Shares in Hypo Real Estate fall 9.9 percent to 2.96 euros, making them the top losers in Frankfurt's blue-chip DAX index, a day after the German property financier said it will need even more cash than the 50 billion euros already secured and that it expects losses in 2008 and 2009.
Traders link the share price move to Monday's news, saying they are unaware of any new factors in play.
UniCredit slashes its 2009 earnings per share estimate for Hypo Real to a loss of 1.08 euros from a gain of 0.16 euros.
"There is a complete lack of future prospects for the company," UniCredit says in a research note, reiterating its "sell" recommendation and price target of 2.1 euros. "No end of the problems in sight," UniCredit says.
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09:03GMT 18Nov2008-ICAP gains after says confident on outlook
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Shares in ICAP rise 2.7 percent in a weaker market after the world's biggest interdealer broker says it expects full-year profit to exceed market consensus and that the financial crisis will create interesting opportunities for the company to further develop its business.
"The figures were very resilient indeed. The fact they've continued this year's numbers is giving people a bit more confidence," a trader says.
It expects operating profit for the year ending March 2009 to exceed average
forecasts of 347 million pounds ($517.5 million) provided by 13 analysts, up from 330 million pounds for the year ended March 2008.
ICAP, however, says that for the six months ended September, it generated operating profits of 174 million pounds, below a Reuters Estimate consensus of 180.4 million pounds.
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09:00GMT 18Nov2008-Leoni stock gains on CEO interview
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Shares in German cable and wiring specialist Leoni rises 2.15 percent as one of the top gainers on Frankfurt's midcap index, following positive statements in an interview by the company's Chief Executive Klaus Probst in German newspaper Frankfurter Allgemeine Zeitung.
Probst says that he still expects to at least reach this year's sale level in 2009.
This "might work slightly positive for sentiment, but it will be difficult to attract investors at the moment," says a Frankfurt-based trader.
Shares in the company -- which supplies to the crisis-ridden carmaker industry -- have underperformed the MDAX by 54.5 percent so far this year.
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08:57GMT 18Nov2008-Wolseley falls as weak Q1 adds to debt worries
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Shares in Wolseley fall 5 percent after the building supplies blue chip reports poor first-quarter trading, increasing concerns over its banking covenants.
"Interest cover covenants and net debt to EBITDA remain the key concern," says Citi analyst Clyde Lewis. "The net debt position has deteriorated to 2.69 billion pounds in the first 3 months due to seasonal patterns and the translation of non sterling debt."
Deutsche Bank analysts describe it as a "weak Q1 trading statement from Wolseley that we believe will heighten concerns over the balance sheet".
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08:42GMT 18Nov2008-Walker Crips down on fall in H1 profits
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Shares in Walker Crips tumble 16.2 percent as the British financial services group posts a 42 percent fall in first half pretax profit, prompting Altium Securities to downgrade its 6-month trading recommendation on the stock to "sell" from "neutral" and cut its estimates.
Altium says it has reduced 2009 pretax profit estimates to 13.7 million pounds from 15.1 million pounds, with EPS coming down to 1.4 pence from 2.4 pence.
The broker also cuts 2010 forecasts; pretax profit falls to 13.9 million pounds from 16.2 million pounds, while EPS drops to 1.8 pence from 3.2 pence.
Altium says because of the reduction to its estimates it expects the shares to come under some pressure in spite of the cash on the balance sheet and strong
performance within the fund management division.
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09:38GMT 18Nov2008-Deutsche Telekom lower on broker downgrades
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Shares in Deutsche Telekom drop 2.3 percent after Deutsche Bank and Goldman Sachs both downgrade the stock on valuation grounds saying it has been a strong sector performer and now largely prices in the company's positive outlook and positive strong catalysts in the coming months.
Deutsche Bank, which downgrades Deutsche Telekom to "neutral" from "buy" and
lowers its price target to 14.2 euros from 15.3 euros per share, recommends peers Vodafone and Telefonica over the German company.
Goldman Sachs downgrades the stock to "neutral" from "buy" removing it from
the brokerage's "Pan-Europe buy list" and pegging its target price at 13 euros per share.
Both brokerages mention increased cost cutting and possible better-than-expected performance in domestic business as factors that may allow Deutsche Telekom to surprise on the upside.
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08:35GMT 18Nov2008-Deutsche Boerse falls on talk big funds might exit
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Shares in German stock exchange operator Deutsche Boerse fall 1.9 percent, putting them among the leading losers in Frankfurt's DAX top-30 index , amid talk that activist investment funds TCI and Atticus might choose to divest their stakes having failed in their push for a strategy change.
Together, TCI and Atticus own 19.3 percent of Deutsche Boerse, down from 19.4 percent earlier.
Konrad Becker, analyst at Merck Finck, says in a note that he does not exclude that the funds "will try to reduce or to terminate" their holdings, which he says might put pressure on Deutsche Boerse's share price.
Deutsche Boerse's shares underperform European sector peers such as London Stock Exchange, the Paris-listed shares of NYSE Euronext and Spain's BME. For more double click on
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08:33GMT 18Nov2008-Stocks inch lower early as banks slip
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European shares inch lower in early trade, as falling banking shares offset gains in the tech sector while energy shares rise along with oil prices.
By 0835 GMT, the FTSEurofirst 300 index of top European shares is down 0.3 percent at 835.02 points in choppy trade.
Nokia gains 3.6 percent, Total rises 1.2 percent, while BNP Paribas drops 7.5 percent and Banco Santander falls 3.6 percent.
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08:38GMT 18Nov2008-FTSE Small Cap Index down 0.2 percent early
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The FTSE Small Cap Index falls 0.2 percent, marginally outperforming the larger UK blue chip stocks, which falls 0.5 percent.
Spring Group slides 6 percent as the professional staffing and workforce management company reports that global economic volatility has caused a softening in some of its markets and given the uncertainty, it is taking the appropriate steps to reduce costs.
Walker Crips slumps 16.2 percent after it announces its first half profits fell 42 percent to 810,000 pounds, prompting Altium Securities to repeat
its 6-month trading "sell" recommendation.
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08:07GMT 18Nov2008-MPC falls as company issues profit warning
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Shares in German holding company MPC fall 14.5 percent to the bottom of Frankfurt's smallcap index, after the company says it will write down 80 million euros ($101 million) of its investment in HCI Capital , adding it now expects a consolidated net loss of 70 million euros in 2008.
"MPC's shares have already been hammered, but one can see there seems to be a weekly deterioration in the segment," says a Frankfurt-based trader.
MPC already lowered its full-year profit guidance in October and in August.
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07:46GMT 18Nov2008-Arques seen down after company cuts 2008 outlook
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Shares in German investment group Arques are indicated 6.6 percent lower, according to Lang & Schwarz, after the company slashes its full-year outlook for the second time this year.
The company says it posted 51 million euros ($64.49 million) of impairment losses on its holding in automotive supplier Eurostyle in the third quarter.
"The company seems to be more affected by the recession than previously expected, in particular with regard with the automotive supplier segment," says Viscardi analyst Peter-Thilo Hasler, also pointing to the fact that banks have made the borrowing of money more difficult.
The company now expects full-year earnings before interest, tax, depreciation and amortisation to reach at least 100 million euros, down from a previous estimate of 200 million euros.
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07:41GMT 18Nov2008-European stock index futures point to dip
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European stock index futures point to a weaker opening following a lower close overnight as concerns grow about a deep global recession.
Futures for the DJ Euro Stoxx 50, Germany's DAX and France's CAC 40 are down 0.1-0.5 percent.
The U.S. market closed lower overnight, while Japan's Nikkei closed down more than 2 percent on Tuesday.
European companies:
Baloise Hldg
British Energy
Burberry
ICAP
Carphone
Enterprise Inns
Lonmin
Premier Foods
REXAM
WELLSTREAM HLDGS
Wolseley
U.S. companies:
Medtronic
Home Depot
Macro (GMT):
0930 GB CPI
1330 US PPI
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