STOCKS NEWS EUROPE-Swiss Re down on rating disappointment
STOCKS NEWS Reuters Results diary
Stocks on the move [HOT-RTRS] Real-time Equity News [E] [WEU/EQUITY]
14:36GMT 26Mar2009-Swiss Re underperforms on rating disappointment
------------------------------------------------------------------
Shares in Swiss Re (RUKN.VX) fall 4.1 percent to 18.81 Swiss francs, underperforming a 0.2 percent weaker DJ Stoxx European insurance index, as Goldman Sachs says it prefers competitor Munich Re (MUVGn.DE), which trades flat at 95.78 euros.
"Goldman Sachs took Munich Re onto its Pan-Europe Conviction Buy List, while Swiss Re only got a neutral rating," a trader says.
"Some people are locking in short-term profits," a second trader says, noting Swiss Re stock had bounced back from a record low of 11.88 francs on Mar. 9.
Reuters Messaging rm://jason.rhodes.reuters.com@reuters.net
14:24GMT 26Mar2009-REC jumps on plant speculation
-------------------------------------------------
Shares in Norwegian solar energy firm Renewable Energy Corp (REC.OL) jump 13.5 percent but retreat from earlier gains of 20 percent on speculation over a planned start up of an expanded silicon plant by firm by the end of March.
REC declines to comment on the speculation. REC's CEO told Reuters on Monday that REC probably would update the status of its Moses Lake, Washington, plant this month. [ID:nLN381262]
"REC management is as far as I know in the United States now, but their mere presence at Moses Lake shouldn't be enough to lift the stock by 10 or 20 percent," analyst Einar Kilde Evensen at DnB NOR Market says. Some traders say the move was also linked to unwinding of short positions in the stock.
Shares in other European solar companies are mixed as the sector's outlook for 2009 is still unclear. [ID:nLP951538]
Reuters messaging rm://richard.solem.reuters.com@reuters.net
13:46GMT 26March2009-Europe stocks stay weak despite higher Wall St
-------------------------------------------------------------------
European shares stay weak as Wall Street opens up after reports on economic growth and jobless claims come in as expected with banking stocks one of the biggest risers.
The pan-European FTSEurofirst 300 .FTEU3 is down 0.3 percent at 741.66 points in a choppy session, while the Dow Jones industrial average .DJI, the S&P 500 index .SPX and the Nasdaq Composite .IXIC are up 0.9-1.6 percent.
Banking stocks are higher with Barclays (BARC.L), BNP Paribas (BNPP.PA), Lloyds Banking Group (LLOY.L) and Banco Santander (SAN.MC) up 0.7-8.6 percent.
Utility shares are on the downside, with E.ON (EONGn.DE) down 1.1 percent.
Reuters Messaging rm://joanne.frearson.thomsonreuters.com@reuters.net
12:25GMT 26Mar2009-FTSE Small Caps up 0.3 percent at midday
-------------------------------------------------------------
The FTSE Small Cap index .FTSC climbs 0.3 percent in mid session trade, marginally extending earlier gains as the FTSE 100 index .FTSE slips 0.1 percent higher, and the midcaps .FTMC fall 0.2 percent.
British Boutique advisory company Cenkos Securities (CNKS.L) soars 37 percent as the company for says it has weathered the current financial crisis better than its competitors and it has attracted new clients, while cutting its final dividend to 5 pence from 12 pence.
Songbird Estates SBDb.L falls 25 percent after admitting it risks breaching loan covenants in the next 12 months due to a sharp fall in the value of its properties and reporting a 70 percent decline in its underlying net asset value per share at the end of 2008
Reuters Messaging rm://david.brett.reuters.com@reuters.net
12:22GMT 26Mar2009-Aquarius jumps on share placing plan
-------------------------------------------------------
Shares in Aquarius Platinum (AQP.L) jump 13.9 percent after the world's fourth biggest platinum producer announces plans to raise up to $251 million via a share placing, rights issue and convertible bond issue to pay off a bridge loan and fund operating expenses.
Evolution Securities say, "We think that Aquarius is being prudent in raising money to help service its current debt of US$158 million and to help in its 63 million pounds...offer for Ridge Mining."
Aquarius said on Feb.18 it planned to buy Ridge Mining Plc in all all-share offer consisting of one of its shares for every 2.75 Ridge shares. Evolution says, pending the outcome of the proposed placing, rights issue and convertible bond, they have their recommendation under review from "sell".
For more double click on [ID:nLQ075315n]
Reuters Messaging rm://farah.master.reuters.com@reuters.net
11:53GMT 26Mar2009-Kalahari up; Rio ups stake in Extract
--------------------------------------------------------
Shares in Kalahari Minerals Plc (KAH.L) gain 3.6 percent as London-listed blue chip miner Rio Tinto (RIO.L) ups its stake in Extract Resources Ltd (EXT.AX) (EXT.TO), in which Kalahari's uranium unit holds a 39.81 percent interest, to 15.6 percent from 13.8 percent.
"The news shows that Rio is still very much in the hunt for the Rossing South asset. This is clearly positive for Kalahari," says broker Ambrian in a note.
Kalahri shares have more than doubled since the middle of February on the back of positive updates from its Rossing South discovery.
The broker believes Rio will purchase as much equity as possible, as cheaply as possible, prior to reaching 20 percent ownership and having to pay the sort of premium its peer group comparison suggests - well over $1 billion.
Reuters Messaging rm://david.brett.reuters.com@reuters.net
11:39GMT 26March2009-Commerzbank rises; short covering
------------------------------------------------------
Shares in Commerzbank (CBKG.DE) rise 10.5 percent as traders cite short covering and say the bank is continuing to catch up to some of the gains its financial peers have seen over the past days.
"It looks a bit like covering shorts to me," says a Frankfurt-based trader.
Commerzbank shares have been the worst performer on Germany's DAX-30 Index over the last 3 months, losing 39 percent of their value, while peer Deutsche Bank (DBKGn.DE), for example, has gained around 24 percent.
The stock is trading at 2.64 times its estimated 2009 earnings, versus around a P/E ratio of 5.38 for the banking sector, according to data from Thomson One.
Reuters Messaging rm://tyler.sitte.thomsonreuters.com@reuters.net
11:26GMT 26March2009-Songbird slumps on covenant worries
--------------------------------------------------------
Shares in Songbird Estates SBDb.L fall 25 percent after the company says it risks breaching loan covenants in the next 12 months due to a sharp fall in the value of its properties and reports a 70 percent decline in its underlying net asset value per share at the end of 2008.
KBC Peel Hunt analyst Keith Crawford says the company, which owns much of London's Canary Wharf business estate, is close to breaching covenants on its banking facility with Citicorp, which is also one its tenants.
He says it has been a challenging period for Songbird with speculation that Bank of America are moving back to the City and the collapse of Lehman Brothers.
However, Crawford, who maintains a "hold" rating on the stock says: "While the disclosures from Songbird are not encouraging, it should be mentioned that no one foresaw, including Songbird, how quickly property values would fall in the last quarter of 2008.".
For more double click on [ID:nLO497869]
To see Songbird's statement please click on [ID:nRn1Z5125P]
Reuters messaging rm://purwa.naveen.thomsonreuters.com@thomsonreuters.net
Reuters messaging rm://matthew.scuffham.thomsonreuters.com@thomsonreuters.net
