Europe chems stocks hit on fear of global downturn

21 January 2008 12:54  [Source: ICIS news]

LONDON (ICIS news)--European chemicals stocks tumbled on Monday amid continuing fears of a global recession, with oil and financial stocks also plummeting.


The Dow Jones Euro Stoxx Chemicals index fell 5.5% from Friday’s close at 11:15 GMT, with all European chemicals majors taking big hits.


“The market is worrying about a global recession; that it may not just be a US recession,” said UBS chemicals analyst Themis Themistocleous.


“If you take a step back, the chemicals sector was valued at high multiples at this time last year… it would not be surprising if we now see low valuations,” he added, saying the sector was not far from where the wider market is moving.


stocks fell 5.7% to €86.72, Bayer was down 5.9% to €56.45 and Akzo Nobel shares lost 4% of their value at €46.34.


Among the biggest losses in European chemicals were Wacker Chemie, which fell 7.1% to €131.50, Clariant, down 6.6% at €4.95, and DSM, which shed 6.2% to €26.93.


Germany’s DAX index was down 5.6% in morning trading, with the FTSE 100 in the UK falling 4.7%.


By: Mark Watts
+44 20 8652 3214

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