Helsinki shares slightly higher at midday, Nokia lower on guidance update

Helsinki shares slightly higher at midday, Nokia lower on guidance update

	Published : Mon, 02 Apr 2007 11:09 By : Agencies Print this Story

HELSINKI (AFX) - Helsinki shares were slightly higher in midday trade, with Nokia underperforming the broader market after a guidance cut from Nokia Siemens Networks in which the group cut its 2007 market sector forecasts, brokers said.

At 12.39 pm, the OMX Helsinki 25 was 0.09 pct higher at 3,080.49 and the OMX Helsinki was down 0.14 pct at 10,298.58 on 280 mln eur turnover.

Nokia -- 0.87 pct lower at 17.08 eur -- underperformed the broader market after its new joint venture Nokia Siemens Networks said it is cutting its 2007 outlook for the mobile and fixed networks market in euro terms from 'slight' to have ry slight' growth.

Jari Honko from eQ Bank said that this is the first update coming from the new company and it was 'already negative'.

'I think 2007 will be a challenging year for the new entity,' he added.

In a note to clients, FIM Securities said, 'the change in the outlook is not huge, but nonetheless negative.'

WestLB said in a note to clients that the guidance cut was not a 'political statement', noting that Nokia did not want to use it as a tool to get the restructuring programme underway at Nokia-Siemens Network or to build pressure on unions in Germany.

'In our view, the looming next broadband-related wave of capex will not be an investment theme this year, as next generation core and access technologies are unlikely to fuel demand this year,' WestLB added.

Dresdner Kleinwort, which has a 'sell' rating on Nokia said in its review that the new joint venture of Nokia-Siemens seems to feel the pain of customer uncertainties.

'Nokia-Siemens, like Alcatel-Lucent (Nortel), has started to experience customer hesitancy,' DK said.

The brokerage firm said that lowering the bar to 2-3 pct from 5 pct was a reflection of merger anti-synergies.

'We maintain our long-held view that product overlaps will hamper sales for the foreseeable future, especially on the mobile front,' DK added.

Among other fallers, Stora Enso R was 0.23 pct lower ar 12.97 eur, Konecranes shed 0.60 pct to 24.95 eur and M-real B was 1.03 pct weaker at 5.76 eur.

Of the gainers, Outokumpu advanced 1.52 pct to 26.12 eur, Wartsila B added 0.22 pct to 46.39 eur and Metso was up 0.88 pct at 39.90 eur.

azer.sawiris@thomson.com

afs/tw

The copying, republication or redistribution of AFX News Content, including by framing or similar means, is expressly prohibited without the prior written consent of AFX News.

AFX News and AFX Financial News Logo are registered trademarks of AFX News Limited