(Updates with full report)
OSLO (Thomson Financial) - Oslo shares closed sharply lower, giving back all of yesterday's gains and more, as investors bailed out of energy intensive stocks such as Yara International and Norsk Hydro after oil prices hit new record highs, dealers said.
The OSEBX benchmark closed 3.35 percent lower at 443.05, while the OSEAX all share index was 2.96 percent weaker at 515.64.
Total turnover amounted to 13.35 billion Norwegian crowns.
Investors were already nervous about the state of the global economy, and a new record oil price above $146 dollars barrel was the spark that led to the sell-off in Oslo today.
Particularly targeted were those energy-intensive stocks, which are likely to suffer from rising oil prices.
Fertiliser group Yara slumped 8.96 percent to 391 crowns, while aluminium group Hydro crashed 6.56 percent to 67.
Other notable losers today included Acergy, which fell 5.15 percent to 106 crowns ahead of its second quarter results next week, and Petroleum Geo-Services, which closed 5.41 percent lower at 118, after announcing that vessel utilisation had fallen during the second quarter, both from last year and from the previous quarter.
Elsewhere, the vast majority of stocks closed firmly in the red.
Seadrill fell 4.68 percent to 152.75 crowns, Frontline dropped 5.27 percent to 323.50, and Wavefield Inseis extended recent falls, closing 4.07 percent weaker at 33.
Embattled paper manufacturer Norske Skog, which has fallen sharply in recent weeks, closed 2.21 percent lower at 22.10 crowns, while conglomerate Orkla lost 2.89 percent to 63.80.
In the oil sector, StatoilHydro fell 2.73 percent to 182 crowns, DNO dropped 4.62 percent to 9.30, and PA Resources eased 1.15 percent to 64.25.
Gainers were few and far between, the only notable name being Renewable Energy Corporation, which added 0.40 percent to 125.50 crowns.
Rising oil prices make the firm's solar energy panels an increasingly viable source of energy, dealers say.
Amongst Norway's other large cap stocks, Telenor eased 1 percent to 99 crowns, DnB NOR lost 2.03 percent to 62.80, and Aker slumped 4.05 percent to 231. alastair.reed@thomsonreuters.com ar/lam COPYRIGHT Copyright Thomson Financial News Limited 2008. 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.
© 2008 AFX News
