(Updating with full report)
OSLO (Thomson Financial) - Share prices closed lower, led down by Yara International on negative broker comments, brokers said.
The OSEBX Benchmark index closed 2.53 points lower at 489.12 and the OSEAX All Share index fell 1.92 points to 557.26.
Total turnover amounted to 12.67 bln nkr.
Yara International closed 4.5 nkr lower at 175 after Morgan Stanley reiterated its 'underweight' recommendation on the stock following the group's 12.12 euro per share bid for Finland's Kemira GrowHow. The broker still sees 'potential for deterioration in fundamentals and an expensive valuation.'
While Morgan Stanley said it has raised its price target by 7 pct to 145 nkr to reflect potential merger synergies, it added this still leaves 20 pct downside potential.
Norske Skog rose 0.6 to 91.9.
Norsk Hydro fell 0.75 to 210.75 after Carnegie advised investors to sell Norsk Hydro and buy into Statoil following speculation in Canada that Hydro is preparing a 30 bln usd-plus bid for Alcan.
'We think it would most likely be negative for the Hydro share price if it started bidding on Alcan,' said the broker, which has an 'underperform' recommendation on Hydro.
According to Canada's 'Globe And Mail' newspaper, Norway's Hydro is planning a bid for Alcan, which is already facing a bid from US rival Alcoa.
Hydro, which is 43.8 pct-owned by the Norwegian state, has declined to comment on the story.
Statoil shed 0.25 to 166.5. The market consensus for the group's first-quarter earnings tomorrow is pretax profit of 26.3 bln nkr vs 8.5 bln on sales of 104.5 bln vs 109.0 bln.
Seadrill was 2.25 lower at 111. The group posts first-quarter earnings tomorrow. The consensus is for operating profit of 79 mln usd vs 24 mln on sales of 333 mln vs 192 mln last time.
Golar LNG rose 1.5 to 108.5 after Carnegie hiked its recommendation on the stock to 'outperform' from 'neutral', with a target price of 140-150 nkr, saying that a split of the company into 'LNG shipping' and 'LNG logistics' is likely by the end of the summer, brokers said.
PA Resources was up 1.75 at 57.25 after Carnegie said it is 'time to buy' the stock, on which it has a short term price target of 69 nkr.
Carnegie said there are a raft of reasons to buy into PA, and not least because oil production is stable and increasing.
The broker said insiders are buying into the stock, which is 'a clear signal', and that the firm 'could be the next Norwegian oil name to come in play' in terms of mergers and acquisitions.
Petroleum Geo-Services was 0.25 lower at 149, DNO shed 0.4 to 11.65, Fred Olsen Energy was down 7.5 at 304.5 and Stolt-Nielsen shed 3 to 185, while Subsea 7 rose 1.5 to 131.25 and Frontline added 5.5 to 260.5.
Telenor shed 1 to 115, falling from earlier highs after a confident outlook at its Capital Markets Day on Friday encouraged investors, dealers said.
Merrill Lynch said that while the event did not provide much 'in the way of short-term catalysts, we think long-term investors will remain confident.'
Dresdner Kleinwort described the CMD as 'upbeat,' and said it had 'suggested incremental upside on a number of fronts.'
Dresdner has a 'buy' recommendation and a 132 nkr price target on Telenor.
Bear Stearns, meanwhile, reiterated its 'outperform' recommendation and 145 nkr price target on the stock.
EDB Business Partner was down 0.75 at 51.75, while Fast Search & Transfer rose 0.2 to 15.7 and Tandberg added 0.25 to 135.75.
DnB NOR fell 0.2 to 79.8. Royal Bank of Scotland has announce a 71.1 bln eur bid for ABN Amro, which has put focus on bank stocks today, dealers said.
Storebrand rose 1 to 95.
Orkla shed 2 to 102.75, Schibsted fell 8 to 285 and Renewable Energy Corporation was unchanged at 187, while Hafslund B was up 2.5 at 142, Aker Kvaerner rose 0.25 to 146.5 and Aker Yards added 1 to 102.5. michael.delaine@thomson.com mdl/jfr COPYRIGHT Copyright AFX News Limited 2007. All rights reserved. The copying, republication or redistribution of AFX News Content, including by framing or similar means, is expressly prohibited without the prior written consent of AFX News.
© 2007 AFX News
