March 11, 2009 / 3:19 PM / 10 years ago

RPT-STOCKS NEWS EUROPE-FMC down on fears of US legislation

(Refiles to fix spelling of Bernstein)

STOCKS NEWS Reuters Results diary

Stocks on the move [HOT-RTRS] Real-time Equity News [E] [WEU/EQUITY]

15:15GMT 11March200 - FMC down on fears of US legislation


Shares in Fresenius Medical Care (FMEG.DE) drop 7 percent, extending Tuesday's losses and making them the top decliners among German blue chips .GDAXI, as the stock is hit by a general retreat from defensives and as investors speculate the dialysis company might be hurt by possible healthcare legislation in the United States.

In a note to clients, Bernstein Research says that FMC would be one of a few dialysis companies hardest hit by a possible shift of patients from commercial payers to a Medicare-based public plan, should the U.S. nationalise its healthcare system.

Several traders point to the Bernstein brokerage note putting pressure on FMC’s shares.

Bernstein says it sees political and practical barriers to a major publicly managed plan, but foresees lower margins for FMC should it be passed.

FMC’s MDAX-listed MDAXI parent company Fresenius SE FREG_p.DE is down 5.5 percent.

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14:44GMT 11March2009-European shares hold gains after early U.S. volatility


European shares hold on to their gains after a volatile opening on Wall Street.

The FTSEurofirst 300 index .FTEU3 of top European shares is up 0.8 percent, led by financials .SX7P .SXIP and autos .SXAP. [ID:nLB547289]

In New York, the Dow Jones industrial average .DJI is up 0.5 percent, the S&P 500 .SPX rises 1.0 percent and the Nasdaq .IXIC trades 1.5 percent higher. [ID:nN11279359]

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13:06GMT 11March2009-Golden Ocean up on firmer bulk market


Shares in Norwegian dry bulk firm Golden Ocean GOGL.OL rise 5.5 percent and Hong Kong-based peer Jinhui Shipping (JINS.OL) rise 5.1 percent as freight markets show signs of improvement after last year’s plunge.

The Baltic Exchange’s main sea freight index .BADI, which tracks rates for shipping of dry commodities, rose 1.6 percent on Tuesday, hitting its highest this year. [ID:LA100802]

China imported a record tonnage of iron ore in February as steelmakers raced to produce, despite plunging volume of exported steel products, data from China’s Customs office showed on Wednesday. [ID:nSHA179766]

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13:03GMT 11March2009-Hypo Real drops on capital increase report


Shares in property lender Hypo Real Estate HRXG.DE drop 7.5 percent as one of the biggest decliners in Frankfurt’s midcap index .MDAXI after German paper Sueddeutsche Zeitung reports the German government has only until April 24 to launch a capital increase for the company, citing bank sources.

Officials from Germany’s finance ministry could not be reach for immediate comment.

The report adds that financial sources are pencilling in around 10 billion euros ($12.76 billion) for the capital increase.

“There are reports that they (Hypo) need 10 billion euros very soon, apparently there is an urgent need for action. In the market, concerns are growing that the last step needs to be taken very quickly,” a trader says.

For more double click on [ID:nB556590]

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($1=.7840 Euro)

12:20GMT 11March2009-Admiral rises; CS keeps “neutral” rating


Shares in British motor insurance company Admiral (ADML.L) are up 1.3 percent, after Credit Suisse retains its “neutral” rating on the stock.

“Admiral has remained resistant to the onset of the economic downturn, reflecting the compulsory purchase nature of UK motor insurance at the heart of its business model,” Credit Suisse says in a note.

“Weighing in the company’s favour is the potential for a return to form in 2010+ and a low risk balance sheet that appears relatively attractive in the current climate,” it says, but trimming its price target to 1,097 pence from 1,135.

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12:00GMT 11March2009-Pace higher after RBS ups target


Shares in British TV technologies company Pace PIC.L are up 3.3 percent after RBS raises its price target on the group to 103 pence from 52 pence, while reiterating its “buy” recommendation.

“The set-top box industry is at the heart of an evolution in the pay TV sector where medium-term growth should be supported by growing subscriber numbers, technology upgrades and the move to digital broadcasting,” RBS writes in a note.

“Importantly, Pace is well-positioned to capitalise on these trends, which underpins our expectations for continued strong growth in profits.”

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12:05GMT 11March2009-FTSE Small Caps up 0.4 percent at midday


The FTSC Small Cap index .FTSC rises 0.4 percent in mid-session trade, outperforming London's blue chip index .FTSE, which slides 0.5 percent, while the FTSE 250 .FTMC climbs 0.7 percent.

Laird LRD.L soars 33.6 percent as the British electronics group says it has seen no further deterioration in revenues so far this year, with FinnCap repeating its strong “buy” rating, saying it’s important the company maintained its final dividend of 7.88 pence.

Regional newspaper publisher Johnston Press JPR.L plunges 26 percent after the group says its advertising revenues slumped 36 percent in the first nine weeks of 2009 and concerns it could breach its banking covenants, prompting Numis to keep its “reduce” rating.

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12:06GMT 11March2009-Renishaw down; warns on H2 losses

——————————————————————————— Shares in Renishaw (RSW.L) fall 21.7 percent after the British precision engineer warns of second half operating losses as monthly revenue continue to deteriorate, prompting WH Ireland to place its earnings forecasts under review and cuts its rating to “underperform” from “marketperform”.

“The impact of recession has been much greater than we previously imagined. We will be cutting back our earnings estimates severely as a result,” the broker says in a note.

WH Ireland expects to slash pretax profit forecasts to around 5.0 million pounds from 30.5 million pounds for full-year 2009 and to break-even from 22.8 million pounds for full-year 2010.

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