STOCKS NEWS EUROPE-BA slumps on financial crisis, pensions

Sept 18 (Reuters) - STOCKS NEWS Reuters Results diary

Stocks on the move Real-time Equity News


12:01GMT 18Sept2008
BA slumps on financial crisis, pensions

Shares in British Airways are down nearly 10 percent as investors fret over the twin threats of a fall in business class passengers caused by the financial crisis and a 1.5 billion pound pension deficit, analysts say.

'The shares may be affected by the financial meltdown -- around 50 percent of BA's corporate contracts are related to financial services, accountancy and law,' says Royal Bank of Scotland analyst Andrew Lobbenberg, although BA would not comment on its exposure to particular sectors.

BA said earlier its pension deficit at the end of March was 1.5 billion pounds ($2.74 billion), a snap-shot a spokesman says reflects 'weakness in the markets, the poor performance of equities and high interest rates'.

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($1=.5479 Pound)


11:01GMT 18Sept2008
Ryanair gains on hopes for return to profit

Shares in Irish low-cost airline Ryanair are up more than 6.5 percent as the carrier says it will return to 'substantial profitability' next year if the price of oil continues to fall.

'It's true that the financial model bounces back providing oil stays at these levels,' says Collins Stewart analysts Andrew Fitchie, referring to previous Ryanair forecasts for losses based on a higher oil price.

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10:33GMT 18 Sept2008
Severfield Rowen up; RBS repeats 'buy', sees value

Shares in Severfield Rowen gain 5.7 percent to 271.5 pence as RBS repeats its 'buy' rating, while cutting its target price to 315 pence from 431 after updating its model and forecasts in the wake of the firm's recent interim results, released on August 27.

RBS says it believes the construction engineering group made good progress in the first half and it has left its full year 2008 pretax profit estimates unchanged at 50 million pounds.

However, RBS say it has reduced its full year 2009 and 2010 forecasts to factor in a margin decline given the potential impact of further softening in the UK markets and the impact of offsetting this with more overseas work.

RBS concludes that while an investment in Severfield is not without risk, it believes the shares still offer value and feels overseas joint venture's could be an interesting opportunity for the group.

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