(Updating with full report)
OSLO (Thomson Financial) - Share prices closed lower, led down by Norske Skogsindustrier following a broker downgrade, and by Prosafe, while Aker jumped after putting an end to the rampant speculation regarding the future of Aker Kvaerner, dealers said.
The OSEBX Benchmark index closed 1.87 points lower at 504.45, while the OSEAX All Share index fell 1.52 points to 579.44.
Total turnover amounted to 12.24 bln nkr.
After having hit a new record high of 511.17 earlier this week, the Oslo Bors succumbed to weaker sentiment internationally to finish the week fractionally weaker.
According to dealers in Oslo, generally positive sentiment in Norway was soured today through market nervousness across Europe, and a weaker start on Wall Street due to continued concerns about hedge fund exposure to risky mortgage loans and stubbornly high bond yields.
In Norway, paper-maker Norske Skog led the market down, closing 2.78 pct weaker at 87.40, as a broker downgrade added to a generally negative overall mood amongst investors.
In a note to investors, Goldman Sachs said it had cut its recommendation on the stock to 'neutral' from 'buy' following a further weakening of key US newsprint prices.
The broker, which also cut its price target on Norske Skog to 92 nkr from 116, said increased imports of North American newsprint into Europe as a result of falling prices in the US and a weak dollar cast serious doubts over the likelihood of price increases in European newsprint in 2008.
Goldman said it now expects a 1 pct decline in newsprint prices, compared to the 6 pct rise it saw previously.
Offshore services group Prosafe dropped 3.32 pct to close at 93.10, extending recent falls, while LNG shipping group Golar LNG lost yesterday's gains, finishing the week 1.46 pct lower at 101.
Still in the offshore services sector, Seadrill rose 1.55 pct to 131 on soaring day rates and on generally positive sentiment towards the offshore rig sector.
According to dealers in Oslo, Seadrill is being pushed higher by the expectation of even higher day-rates for rigs, which recently crossed the 500,000 usd per day mark, and which are expected to continue rising.
'Seadrill has a couple of rigs which will be available soon, so it should benefit from these rising rates,' one dealer said.
Peer Fred Olsen Energy also benefited from the positive sentiment, rising 1.47 pct to close at 311.50.
Seismic group Petroleum Geo-Services finished an eventful week marginally higher, up 0.2 pct at 153.25, having yesterday fallen 13 nkr after a broker downgrade and as the share started trading without a dividend of 10 nkr per share.
Earlier this week PGS announced the 275 mln usd acquisition of Edinburgh University spin-out MTEM, which specialises in electromagnetic surveying.
Norwegian oil stocks closed the week lower, after oil fell below 70 usd a barrel as the threat to Nigerian crude exports from a general strike was judged to have eased.
Oil giant Statoil closed 0.85 pct weaker at 176, while oil-to-aluminium firm Norsk Hydro eased 0.33 pct to close at 225.50.
Hydro said it will invest 20 mln euros in new equipment at its automotive structures business in Germany, as the firm starts the turnaround of the division following the recent decision not to seek a buyer.
Oil minnow DNO, meanwhile, closed up 1.25 pct at 12.15, benefiting from a local newspaper report which suggested one of its key Norwegian oil assets could contain up to six times the official reserve base.
Speaking to daily newspaper Dagens Naeringsliv, managing director Helge Eide suggested the Goliath oil discovery in the North Sea could hold up to 1.5 bln barrels of oil equivalent, significantly more than the official estimate of 250 mln barrels.
'Goliath North has considerable potential,' Eide was quoted as saying. 'We shall drill several more wells, as well as conduct 3D seismic and electromagnetic surveys. Our tests indicate big supplementary resources.'
DNO has a 15 pct stake in the Goliath licence, while operator ENI has 65 pct, and Statoil ASA has 20 pct.
Leading the risers today was industrial conglomerate Aker, which jumped 4.22 pct to finish at 407.50 nkr after ending speculation over the future of Aker Kvaerner by transferring its 40.1 pct stake in the group to a new holding company partly owned by the Norwegian government.
Aker said it would transfer ownership of the stake to a new holding company called 'Aker Holding', which will be 60 pct owned by Aker and 30 pct owned by the Norwegian government.
Analysts welcomed the news, with Glitnir's Karl Otto Eidem suggesting the transaction should now end uncertainty about Aker's plans, and lead to a narrowing of the 20 pct discount to net asset value at which the stock has recently been trading.
Aker Kvaerner, meanwhile, closed up 0.50 pct at 151, having spent much of the day in the red.
Dealers said that by the close of play the stock had managed to shake off concerns about the amount of control the Norwegian government may wield over the engineering giant, and the loss of the takeover premium that has been priced into the stock in recent months.
'For Aker Kvaerner this (transaction) is positive, as its recent share price development has been mixed as various players bet on a takeover,' Glitnir's Eidem said.
'In the short term the 'takeover spice' has gone, but based on global trends... the firm should benefit from some calm and focus, and being able to present itself as a part-nationalised oil services company.'
Elsewhere, media group Schibsted recovered some of yesterday's losses to finish the week 0.35 pct higher at 286.
Yesterday Schibsted said it will ask for an independent assessment of the proposed 'Media Norge' newspaper consortium if the Norwegian Media authority rejects the plans next week, as expected.
Orkla inched 0.23 pct higher to finish at 107.50, while Renewable Energy Corporation added 0.34 pct to 218.75, recovering from recent losses.
Chemicals group Yara shed 1.34 pct to 183.50, while Frontline, the shipping firm, fell 1.48 pct to finish at 267.
Peer Stolt-Nielsen fell 2.11 pct to close at 185.50.
Telecoms giant Telenor finished the week 1.08 pct weaker at 114.75, shrugging off a strong domestic debut for its 70.6 pct-owned Thai unit Total Access Communications, which rose 5 pct on its first day of trading in Bangkok.
In the IT sector, Fast Search & Transfer rose 0.74 pct to 13.55 on another new contract win, while EDB Business Partner rose 3.24 pct to 55.75.
Video conferencing equipment manufacturer Tandberg rose 2.46 pct to 135.25, while recycling machine firm Tomra fell 1.13 pct to 52.50.
Finally, in the financial services sector, Storebrand fell 1.5 pct to 92.40, and DnB NOR shed 1.29 pct to 76.60. alastair.reed@thomson.com ar/lce 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
