Danish shares close lower, led AP Moller-Maersk, Carlsberg UPDATE

Danish shares close lower, led AP Moller-Maersk, Carlsberg UPDATE

	Published : Mon, 26 Nov 2007 17:22 By : Agencies Print this Story

(Updating with full report)

COPENHAGEN (Thomson Financial) - Share prices closed lower, led down by AP Moller Maersk on a broker downgrade at ABN Amro, and by Carlsberg, while DS Norden rose after an investor newsletter said it sees potential for a 20 pct increase in its share price over the next few years. NKT Holding and FLSmidth also rose, dealers said.

The OMXC20 index closed 0.16 points lower at 461.43, while the OMXCB Benchmark index rose 1.06 points to 438.67.

The OMXC All Share index closed 0.42 points higher at 445.83 on turnover of 4.32 bln dkr.

AP Moller-Maersk A closed 700 dkr lower at 60,800 and the B-shares shed 800 to 61,600. The shares were downgraded to 'hold' from 'buy' at ABN Amro, as the brokerage sees the Danish transport group negatively affected by a weaker US dollar and increasing cost pressures in 2008.

ABN Amro also cut its target price for AP Moller-Maersk to 66,000 dkr from 78,000 dkr.

The rising oil price translates into higher bunker costs for shipping groups, and efforts to compensate through increased freight rates may be 'optimistic given the likelihood of softer volume growth in 2008', the brokerage said.

DS Norden was 41 higher at 534. AktieUgebrevet, a weekly newsletter aimed at investors, said it sees potential for a 20 pct price increase in DS Norden shares in the period until 2010 as the group's earnings rise, driven by the high rates in 2007-2009 on Chinese imports of iron ore and coal, dealers said.

A Sunday newspaper article on the bulk market indicated that South America has large potential as a bulk market, dealers said. India will also play an increasingly important role in the future, they added.

DS Torm fell 6.5 to 181.75. The company is seen benefiting from higher tanker freight rates in short run, but under long-term pressure as tanker supply expected to increase, analysts told daily Boersen.

Carlsberg B was down 13 at 610.

Carlsberg and Heineken are open to the possibility of raising their bid for Scottish & Newcastle (S&N) if the British brewer's management can prove that its value is higher than the current offer of 750 pence per share, Danish daily Boersen said, citing Carlsberg chief executive Joergen Buhl Rasmussen.

'If (S&N's management) believes there is much more value in the business than we can see, they should come and tell us,' Rasmussen said.

S&N chief executive John Dunsmore visited Copenhagen for a press meeting on Friday, but did not disclose his valuation of the group, Boersen said.

Royal Unibrew was 15 higher 530, Danisco added 7.5 to 371 and Novozymes rose 15 to 530.

NKT Holding was 10 higher at 485. The group raised its full-year pretax profit guidance to around 1 bln dkr from 925-950 mln dkr as its NKT Cables unit is selling its existing production facilities in Cologne and moving to a new location.

The sale of the facility will have a 260 mln dkr positive liquidity effect and generate pretax profit of 60-70 mln dkr in the fourth quarter 2007, and the group hence raises its profit outlook.

NKT Holding further said it will invest 750-850 mln dkr during 2008-2010 in new production facilities in Cologne, which will give direct access to ports on the Rhine river.

Vestas Wind Systems added 7.5 to 447.5, William Demant Holding was up 3 at 444.5 and GN Store Nord rose 0.2 to 39.2.

FLSmidth was 16.5 higher at 479 ahead of the group's third-quarter results tomorrow.

Danske Bank rose 0.75 to 198. In a review of Nordic banks, Morgan Stanley cut its target to 235 dkr from 242 on a reiterated 'equal-weight' stance.

Topdanmark fell 9 to 765. It posts third-quarter results tomorrow.

TrygVesta added 0.5 to 385.

Lifecycle Pharma was 0.2 lower at 40.3. The group posts third-quarter results tomorrow.

Novo Nordisk B shed 2 to 634 and Lundbeck fell 0.75 to 145.75, while Coloplast rose 4 to 472.

michael.delaine@thomson.com

mdl/ak

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