LONDON, June 12 Lufthansa's dim
outlook is bringing out the bears as short-sellers set their
sights on European airlines that are grappling with increased
** Data from Markit shows that the average short interest
across European airline stocks has been slowly moving higher,
rising this year to 2.5 percent from around 2 percent.
** This now puts the European airline sector, runaway
outperformers over the first quarter, broadly in line with short
interest across European STOXX 600 index.
** "The worry for me is that even though the macroeconomic
backdrop is improving, the competitive pressure is
intensifying," says Edmund Shing, global equity portfolio
manager at BCS Asset Management.
** Lufthansa down 1.2 percent, following on from a 14
percent fall on Wednesday.
** Trading volumes in Lufthansa shares come in at 94 percent
of the stock's 3-month daily average, above volumes on the
benchmark German DAX index which only come in at 16
percent of the DAX's 3-month daily average.
** Air France KLM shares fall 1.3 percent,
following on from a 7 percent drop on Wednesday.
** Cantor Fitzgerald analysts cut their price target on
Lufthansa's shares to 20 euros from 22 euros, but keep a "buy"
rating on the stock, arguing that Lufthansa's "fundamentals"