STOCKHOLM (Thomson Financial) - Stockholm shares were slightly lower in early morning trade, pressured by renewed credit market jitters, with defence group Saab underperforming after its weaker-than-expected nine-months results.
At 10.05 am, the OMX Stockholm index was down 0.63 pct at 383.53, while the OMX Stockholm 30 was 0.78 pct lower at 1,178.13. Turnover amounted to 3.74 bln skr.
Ericsson B was down 1.57 pct at 18.76. Ericsson chairman Michael Treschow said he still has confidence in CEO Carl-Henric Svanberg, but that Svanberg 'must sort out' the company's current situation, which culminated in this week's shock profits warning, Dagens Industri reported.
Among the telecom operators, TeliaSonera was down 0.44 pct at 56, and Tele2 B was up 0.18 pct at 141.75.
Saab B was down 2.22 pct at 154.50.
'The report was quite weak. Operating costs were higher-than-expected, R&D admin, etc,' Mikael Laseen, an analyst at Kaupthing Bank said.
Scania B was flat at 175.50. Speculation that Volkswagen and Wallenberg family-controlled entities have agreed Scania will bid for MAN is being driven by market interests rather than hard facts, Sueddeutsche Zeitung reported citing sources familiar with the matter.
The sources said the story is rumour and only serves to drive the companies' share prices.
Assa Abloy B was down 0.54 pct at 137.75. HSBC has upgraded the share to 'neutral' from 'underweight', in a global capital goods note.
Skanska B was up 0.57 pct at 132.75. Skanska said it has won an order worth 181 mln usd from the state of California to build a central utility plant in Sacramento.
Getinge B was down 0.32 pct at 157.50. Carnegie reiterated its 'neutral' rating after yesterday's results.
'The Q3 results were strong, as expected, and the earnings outlook remains strong. We stick to Neutral and make only minor changes to our estimates for 2007-09,' the investment bank said.
Among other heavily traded shares, Hennes & Mauritz B was down 0.47 pct at 420.50, SEB A was down 1.22 pct at 202, and Sandvik was down 0.93 pct at 133.50. TFN.Stockholm@thomson.com hc/sal COPYRIGHT Copyright Thomson Financial News Limited 2007. All rights reserved. The copying, republication or redistribution of Thomson Financial News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Financial News.
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