Danish shares close lower, led down by Topdanmark, AP Moller-Maersk UPDATE

Danish shares close lower, led down by Topdanmark, AP Moller-Maersk UPDATE

	Published : Tue, 28 Aug 2007 16:39 By : Agencies Print this Story

(Updating with full report)

COPENHAGEN (Thomson Financial) - Share prices closed lower, led down by Topdanmark after a cut in full-year forecast, with AP Moller-Maersk among stocks hit by profit-taking after recent rises.

The OMXC20 index closed 12.24 points lower at 484.48, while the OMXCB Benchmark index shed 10.72 points to 464.82.

The OMXC All Share index closed 9.40 points lower at 476.12,on turnover of 4.54 bln dkr.

The market was hit by negative sentiment from US markets ahead of this evening FOMC interest rates meeting, which comes as focus continues on the sub-prime lending situation, brokers said.

Topdanmark closed 58 dkr lower at 871 after the insurance group posted a weaker-than-expected second quarter and downgraded its full-year outlook.

It cut its guidance for full-year net profit by 100 mln dkr to 1.2-1.3 bln dkr due to a lower-than-expected investment result in the wake of global turmoil on credit and equity markets.

Pretax profit came in at 462 mln dkr, up 23 pct from a year earlier but below market expectations for 541 mln dkr, according to RB Boersen.

'Overall, the report was disappointing,' Jyske Bank analyst Christian Hede said. 'Many had expected an upgrade from the group, and then a downgrade is obviously not optimal.'

Peer insurer TrygVesta shed 6.5 to 433 and Danske Bank was down 6.25 at 220.5

AP Moller-Maersk A fell 1,700 to 68,300 and the B-shares were 1,900 lower at 69,000 on profit-taking after rising yesterday ahead of tomorrow's half-year report, to which many investors have high expectations.

Jyske Bank reiterated its are duce' rating for the group, saying its own forecast for AP Moller-Maersk's earnings in 2008-09 is 6 pct below market consensus due to its more conservative stance on the container market development.

DS Torm shed 6.25 to 220.75, also falling on profit-taking after yesterday's rise ahead of Friday's earnings results.

DS Norden added 9 to 467, continuing its recent rises on reports of stronger bulk transport rates. DSV fell 2.25 to 121.

Carlsberg B was down 7 at 706. Baltika Brewery, which is partly owned by the Danish brewer, proposed a share buyback programme of up to 9.9 mln ordinary shares and 1.2 mln preferred shares to a total value of around 14 bln roubles.

Royal Unibrew was 7 lower at 647 after it revised its full-year pretax profit forecast following a property sale. The group said it now expects a pretax profit of 365-385 mln dkr in the full year 2007, including a non-recurring income of 100 mln dkr from the expected sale of a property in Vilnius, up from its previous guidance of 330-370 mln dkr.

The brewer posted second-quarter EBIT of 98.9 mln dkr, up 3 pct from a year earlier on the back of stronger sales. Net sales increased 16 pct to 1.121 bln dkr, while pretax profit was down 0.4 mln dkr at 96.6 mln dkr. The group's second quarter EBIT margin reached 8.8 pct, versus 9.9 pct a year earlier.

Novozymes fell 24 to 621 after yesterday's rise. Danisco shed 5 to 400.

NKT Holding was 16 lower at 559 on profit-taking, even though Jyske Bank added a higher target price to its upgrade and raised estimates yesterday.

Jyske Bank said it finds the share to be undervalued at the current share price level and consequently raised its target to 670 dkr from 600.

Vestas Wind Systems shed 14 to 359, William Demant Holding was down 5.5 at 484, GN Store Nord fell 0.5 to 51.5 and Bang & Olufsen was 185 lower at 555.

Lifecycle Pharma was 0.9 lower at 49.6 after Morgan Stanley cut its target price to 68 dkr from 71 dkr, and reiterated its 'overweight' recommendation.

Novo Nordisk B shed 13 to 602, Lundbeck was down 2.75 at 126.75 and Coloplast fell 12 to 504. FLSmidth shed 1.5 to 490.5.

michael.delaine@thomson.com

mdl/am

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