Helsinki shares slightly higher at midday, energy stock lead fallers

Helsinki shares slightly higher at midday, energy stock lead fallers

	Published : Thu, 29 Mar 2007 11:38 By : Agencies Print this Story

HELSINKI (AFX) - Helsinki shares were slightly lower in midday trade led by energy shares and Outokumpu, while Metso and Nokia led a select group of blue-chips into the black, brokers said.

At 1.15 pm, the OMX Helsinki 25 was 0.21 pct lower at 3,049.60, while the OMX Helsinki was up 0.11 pct at 10,218.55 on 586 mln eur turnover.

Metso -- 0.72 pct higher at 39.10 eur -- accounted for more than one-third of the market's volume and led the gainers, dealers said.

Industrial peers were also firmer, with Kone putting on 1.32 pct to 42.17 eur, Wartsila B gaining 0.29 pct at 45.30 eur and Konecranes up 0.28 pct to 24.87 eur

Nokia advanced 1.67 pct to 17.06 eur after an update from supplier RF Micro Devices suggests the Finnish handset giant is not suffering the same difficulties as rival Motorola -- which issued a profit warning earlier this month.

Last night, RF Micro -- which makes radio frequency components used in mobile phones -- warned slower demand from a 'top-tier' customer will hurt results in the first quarter, which ends in June.

But the US group also said that demand from other companies is expected to grow.

Analysts at Stiefel Research said we can assume the 'top-tier' customer refers to Motorola. Others agree.

'Given Motorola's commentary on their first-quarter warning and commentary recently from the supply chain this has to be Motorola causing RF Micro issues,' a dealer in Zurich said.

Of the fallers, Fortum was 3.96 pct weaker at 21.61 eur and Outokumpu shed 3.56 pct to 25.48 eur, both share are trading ex-dividend.

Neste Oil lost 2.25 pct to 26.01 eur after it has been downgraded to 'sell' from 'neutral' by Goldman Sachs as the broker says that short-term risks are not priced in, dealers said.

In a note to clients this morning, Goldman Sachs noted that the group's outperformance compared to the refining sector has created a short-term trading opportunity given its strong correlation with the potentially weakening North Western European refining margins as US refineries come off maintenance and recently high gasoline crack spreads weaken.

Among forestries, UPM-Kymmene was 0.16 pct lower at 18.81 eur and Stora Enso R was up 0.15 pct to 13.02 eur ahead of its annual general meeting this afternoon.

azer.sawiris@thomson.com

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