UPDATE 2-Van der Moolen posts Q1 net loss, shares drop
* Revenue declines from fourth quarter
* Net loss narrows
* Cannot predict rest of year
* Shares fall 5.6 pct
(Adds analyst downgrade, stock price)
AMSTERDAM, May 20 (Reuters) - Dutch brokerage Van der Moolen Holding (VDMN.AS) reported a first-quarter net loss on Wednesday, citing low trading volumes and a lack of liquidity in key markets.
Analysts were disappointed by the figures, and its shares were down 5.6 percent at 2.03 euros at 0945 GMT in Amsterdam.
Rabo Securities downgraded the stock to "Hold" from "Buy" and said there were better opportunities in shares of other Benelux financial companies.
Van der Moolen reported a net loss of 4.4 million euros ($6 million), smaller than the 23.4 million loss in the prior quarter, while revenues declined to 16.5 million euros from 22.1 million in the fourth quarter.
The company said in late March that 2009 would be a "challenging year" and it could not forecast any results. It reiterated that view on Wednesday.
"As markets remain vulnerable and signs of an economic upturn are yet weak, it is hard to predict how our business will perform during the course of this year," chief executive Richard den Drijver said in a statement.
Van der Moolen focuses on European trading after closing its U.S. specialist business in 2007. (Reporting by Ben Berkowitz; Editing by Will Waterman) ($1 = 0.7337 euro)
