Europe chemical shares near one-year low

19 August 2011 12:50  [Source: ICIS news]

European chemical company share prices approached their lowest point in 12 months on Friday as fears over the potential for a double-dip recession continued to weigh on stocks across the regionLONDON (ICIS)--European chemical company share prices approached their lowest point in 12 months on Friday as fears over the potential for a double-dip recession continued to weigh on stocks across the region.

The Dow Jones Eurostoxx Chemicals index, which tracks the market valuation of Europe’s biggest listed chemical companies, hit a low of 542.34 points on Friday morning, having opened at 565.81. It was the first time the index had fallen below 550 points since 31 August 2010.

Shares in German specialty chemical and rubber maker LANXESS were hardest hit among the region’s biggest chemical companies, falling by 5.62% to €39.72 ($56.74) per share on the German bourse, the DAX. LANXESS shares last traded at under €40 on 14 September 2010.

Another German company, chemical giant BASF, also sustained losses on the DAX, with its shares selling for €48.47, the first time they had traded under €50 since 13 September 2010.

The fall in chemical company share prices came as stock markets tumbled the world over, after concerns that the US and Europe could be on the brink of a second major recession in two years.

Chemical industry analysts warned on Thursday that the US and Europe could be facing a recession or a toxic combination of stagnant growth and high inflation.

In London, the FTSE 100, which tracks the UK’s 100 biggest listed companies, fell below 5,000 points for the first time since July 2010. The index dropped to 4,929.55 points, having closed at 5,092.29 points on Wednesday evening.

Meanwhile, the Dow Jones Euro Stoxx 50 index, which follows the 50 biggest blue-chip companies in Europe, also slumped in early trading, approaching the two-year low of 2,077.06 points it last hit on 11 August this year. The index stood at 2,153.53 points on Friday, down by 2.41% from the opening of markets.

Shares in Asia slumped in early trading on Friday, weighed down by fears over the US economy and the financial health of banks and governments in Europe.

($1 = €0.70)

For more on on LANXESS visit ICIS company intelligence


By: Peter Salisbury
+44 20 8652 3214



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