STOCKS NEWS EUROPE-K+S down after UBS downgrade

Shares in K+S (SDFG.DE) fall 4.9 percent, making them the top decliners among German large-caps .GDAXI, after lower Indian potash prices has prompted UBS to downgrade its investment recommendation on the fertilizer group to "sell" from "neutral."

Shares of Potash Corp (POT.TO) and other peers fell sharply on Friday after trade publications reported that India has settled some of its 2009 potash contract order with Russian producer Silvinit (SILV.RTS) at a price of $460 a tonne.

This is well below the $625 to $635 per tonne range that all other major producers had proposed.

"K+S shares gave the sell signal already in late Xetra trading last Friday, after some analysts distributed the story. Nevertheless, selling pressure on K+S should continue today, in addition to the UBS downgrade," says a Frankfurt-based trader.

UBS says it is lowering its own potash price forecast from now to 2013 to $450/tonne from $600 as well as lowering its long-term forecast from $700 to $550/tonne. For more double click on [ID:N10522755]

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