Danish shares close lower, led by DSV, Danisco, Novozymes UPDATE

Danish shares close lower, led by DSV, Danisco, Novozymes UPDATE

	Published : Mon, 29 Jan 2007 17:52 By : Agencies Print this Story

(Updating with full report)

COPENHAGEN (AFX) - Share prices closed lower, led by DSV, on concern that the group will suffer from the change to corporation taxation announced on Friday, and by Danisco and Novozymes, brokers said.

The OMXC20 index closed 0.54 points lower at 456.10 and the OMXCB Benchmark index fell 1.01 points to 436.70.

The OMXC All Share index closed 0.51 points lower at 436.91 on turnover of 4.76 bln dkr.

Dealers said today's trade was characterised by investors digesting the consequences of the changes to corporate taxation that the Danish government announced on Friday.

According to analysts, banks, insurance companies and financial institutions are likely to benefit from the changes, while companies with high debt and low equity will suffer from them.

DSV closed 15 dkr lower at 977. Dealers said the group is one of several high-geared companies that will be hit by the changes to corporation taxation, which among other things reduce the amount companies can offset their net financing costs over 10 mln dkr in their tax accounting.

AP Moeller-Maersk B added 100 to 56,500. The group's Maersk Oil & Gas unit expects to extract more oil from wells in UK North Sea sector through new discoveries and better technology, prospecting director Steve Daynes told daily Boersen.

DS Torm shed 3 to 370, Danisco fell 6 to 455 and Novozymes was down 7 at 462.5, while Carlsberg B rose 4 to 575.

Coloplast shed 2.5 to 493.5. New German reimbursement prices for continence care products from Jan 1 will cut the group's sales by an estimated 20-25 mln dkr in the year ending Sept 30, 2007.

Coloplast posted sales of 6.528 bln dkr for the year to Sept 30, 2006.

Jyske Bank, which said the new prices were not a surprise and said it had expected a negative effect of 25 mln dkr for Coloplast, kept its earnings estimates unchanged and reiterated its 'buy' recommendation.

Novo Nordisk B was 3 lower at 475. The group is expected to benefit from the government's proposed lower taxation on patent income, dealers said.

Lundbeck fell 0.5 to 158.75.

Vestas Wind Systems rose 0.5 to 250.5. Dealers said the group has won an order for 15 turbines from a wind park developer on Taiwan for delivery in July after Spanish peer Gamesa said it could not deliver before 2008. The Danish group would not comment on the reports.

William Demant Holding was up 1 at 475 and GN Store Nord added 0.75 to 85.

Banks and financial institutions are seen gaining from the government's changes to corporation taxation, in particular from the cut in corporation tax rate to 22 pct from 28 pct, dealers said.

Topdanmark was up 21 at 1,032, TrygVesta rose 4 to 464, Sydbank added 3 to 292 and Nordea Bank was 0.5 higher at 90.75, while Danske Bank fell 1 to 261 and Jyske Bank shed 1 to 440.

FLSmidth added 3.5 to 374.5. Daily Boersen said the group's FFE Minerals unit expects to grow to 50 pct of group's sales from 33 pct in the next five years, making the unit as large as the cement business FFE Minerals, chief executive George Robles told a capital markets day in London on Friday.

FFE Minerals supplies equipment to the mining industry.

Jyske Bank said the capital markets day brought no important news and did not cause it to change its earnings estimates. The bank also reiterated its are duce' stance on the stock, which it finds expensive.

michael.delaine@afxnews.com

mdl/har

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