STOCKS NEWS EUROPE-DSG slumps after Best Buy warning

STOCKS NEWS Reuters Results diary

Europe [STXNEWS/EU] Real-time Equity News [E] [GB/EQUITY]

12:53GMT 13Nov2008-DSG slumps after Best Buy warning

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Shares in DSG International (DSGI.L), Europe's second-biggest electrical goods retailer, plunge 18 percent following a profit warning late Wednesday from global market leader Best Buy (BBY.N) and news that credit insurer Atradius has cut back its provision of insurance to suppliers of some retailers, including DSG.

"What it's showing (the Best Buy warning, is the last couple of months, particularly October, have been a disaster (for sales of electrical goods)," says Seymour Pierce analyst Freddie George, who has a "sell" rating on DSG.

Shares in Germany's Metro (MEOG.DE), which owns Europe'e biggest electrical goods retailer MediaMarkt, and number three Kesa Electricals (KESA.L), are down around 10.5 percent and 8 percent respectively.

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