Stockholm shares slightly lower in early trade

STOCKHOLM (AFX) – Stockholm shares were slightly lower in early morning trade, on profit-taking after recent gains, dealers said.

At 9.50 am, the OMX Stockholm index was down 0.21 pct at 396.33 and the OMX Stockholm 30 was down 0.32 pct at 1,217.91. Turnover was 2.70 bln skr.

Ericsson B was down 0.57 pct at 26.30 and Nokia flat at 161.

Sony Ericsson and Safran unit Sagem said they have agreed a joint venture for manufacturing entry-level mobile phones which will see Sagem licensing out its hardware and software and producing Sony Ericsson-branded handsets.

Among telecom operators, TeliaSonera was down 0.82 pct at 60.75 and Tele2 B flat at 114.25.

Tele2 CEO Lars-Johan Jarnheimer said the company’s Swedish Comviq mobile telephony unit is an ‘essential’ part of the group strategy, indicating it is no longer for sale, the newspaper Dagens Industri reported.

He said the goal of continuing to sell off (unprofitable) European operations remains intact, and forecast ‘big’ price declines in the Spanish market where TeliaSonera recently launched operations.

TeliaSonera was downgraded to ‘neutral’ from ‘buy’ by Merrill Lynch as the stock has outperformed by 60 pct over the past nine months and now trades near its 60 skr target price.

SCA B was flat at 386.50. SCA’s Hygiene Products unit is setting up a 200 mln rupees joint venture with India’s Godrej Consumer Products Ltd to make and market sanitary napkins and baby diapers in India, Nepal and Bhutan.

Electrolux B was down 0.85 pct at 174. European white goods makers led by Electrolux, are pushing for tougher environmental rules to force non-European makers to improve standards, Dagens Industri reported.

Volvo B was down 0.51 pct at 583. The share was downgraded to ‘neutral’ from ‘buy’ by Goldman Sachs on valuation grounds following a strong share price outperformance, prompting the downgrade.

In a research report sent to clients this morning, Goldman Sachs said the stock has outperformed the market and the sector by around 60 pct and 39 pct over the past 12 months respectively, and trades near the broker’s 600 skr target price.

Among other heavily traded shares, Scania B fell 0.56 pct to 537, Handelsbanken A was flat to 208.50 and Lindex was up 1.35 pct at 93.75, ahead of its Q1 results due out tomorrow.

TF.TFN-EuropeStockholm@thomson.com

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