Oslo shares close higher, led by Tomra; Seadrill, Fred Olsen lower UPDATE

Oslo shares close higher, led by Tomra; Seadrill, Fred Olsen lower UPDATE

	Published : Tue, 10 Apr 2007 16:38 By : Agencies Print this Story

(Updating with full report)

OSLO (Thomson Financial) - Share prices closed higher, led up by Tomra Systems following a major German order, while Seadrill and Fred Olsen Energy fell on weaker crude oil prices, brokers said.

The OSEBX Benchmark index closed 3.17 points higher at 469.06 and the OSEAX All Share index was up 3.22 points at 528.86.

Total turnover amounted to 12.63 bln nkr.

Tomra Systems closed 1.5 nkr higher at 46.1 after the company said two of its existing customers in Germany had placed extension orders for reverse vending machines to be installed within the next 12 months.

'A total of approximately 800 new machines will be delivered under these two agreements,' the company said.

Aker Kvaerner fell 1 to 138, while Aker Yards added 1 to 109.

Marine Harvest shed 0.11 to 6.86. The group, the world's biggest salmon farmer, said it will discontinue its smoked salmon operation in Ponpivy, France, and transfer production to its Kritsen facilities in northern France.

It also announced that it will close down a Canadian fish processing unit and instead focus its Canadian fish processing at its Port Hardy facility.

Marine Harvest said the measures will help it meet its synergy targets of 900 mln nkr. But dealers said investors were more concerned about developments in salmon prices, which are expected to ease somewhat in the short term, and which led today's share price fall.

Seadrill fell 1 to 102.5 on disappointment that expected mergers with other companies were not imminent, and also on the price of oil, dealers said.

points.

Analysts said the market was absorbing new information on the mergers and acquisitions front, after a senior Seadrill executive said a deal for it to buy a US company was not imminent.

Seadrill vice-chairman Tor Olav Troim was quoted as confirming his group had talked to drillers including GlobalSantaFe and Noble, but said no deal was set to take place.

Analysts also said Seadrill was reacting to broader shifts in the price of oil.

'These shares are closely linked to the oil price. We saw yesterday the oil price had a large dip. So other companies in the sector such as Fred Olsen Energy are all down today.

Fred Olsen Energy shed 5 to 313, Frontline was down 2.25 at 217.75 and Subsea 7 fell 1.5 to 115, while Petroleum Geo-Services added 2.5 to 162.

Acergy rose 1 to 129.5 ahead of its first-quarter results tomorrow. UBS said it expects high earnings growth, as it repeated its 'neutral 2' rating with a price target of 140 nkr.

'After a strong increase at the end of fiscal 2006, market consensus is for 35 mln usd clear profit,' a rise of 69 pct from a year ago. UBS also said share buybacks are expected to continue after results publication.

Norsk Hydro added 2.75 to 202.75 and Statoil rose 1.5 to 166.75.

Yara International was down 3.5 at 159 after shares in peer US Mosaic Co, which produces and markets crop nutrient and animal feed products, fell nearly 5 pct after hours yesterday following weaker-than-expected third-quarter profit. But a recent broker downgrade is also taking its toll, dealers said.

'Morgan Stanley downgraded the stock several days ago and they are still sellers, I believe,' said another analyst who covers Yara.

On April 4, Yara shares tumbled after Morgan Stanley cut its recommendation on the group to 'underweight' from 'equal-weight' on valuation grounds.

Norske Skog rose 1.75 to 107, Tandberg was up 5.75 at 134, Telenor rose 0.5 to 113, Storebrand was 1.8 higher at 100, DnB NOR added 0.7 to 88.2, Orkla was up 3 at 442.5 and Renewable Energy Corporation rose 4.5 to 144.

michael.delaine@thomson.com

mdl/hjp

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