By Sara Sjolin, MarketWatch
Arkema loses 25%
Arkema loses 25%
LONDON (MarketWatch) -- Losing stocks in Europe far outpaced the
gainers on Friday, with investors accessing the latest round of
earnings reports and moving out of risk-sensitive sectors, such as
miners.
Losers
ArcelorMittal slumped 6.1% after the steelmaker warned it will
miss its target for full-year earnings, as shipments are being hit
by lower commodity prices.
Iliad SA slid 7% after the French cellphone operator said it has
made a $15 billion offer to buy a stake in T-Mobile US (TMUS).
Arkema SA sank 25% after the chemicals specialist warned it will
take longer to achieve its medium-term targets.
Société Générale SA lost 1.9%. The French bank reported a rise
in second-quarter profit, but said earnings dropped 36% in Russia
as the political standoff between the West and Moscow, and the
country's weak economy, have taken a toll.
On Thursday, Adidas AG warned that the downbeat sentiment in
Russia would have an impact on earnings, with the sportswear
retailer cutting its 2014 outlook. Shares continued to fall on
Friday, down 1.8%, after Deutsche Bank cut the company to sell from
hold, and J.P. Morgan Cazenove downgraded it to neutral from
overweight.
Royal Bank of Scotland Group PLC (RBS) skidded 1.5% lower as the
bank's Chief Executive Ross McEwan said it's working to wind down
issues that include "significant conduct and litigation issues that
will likely hit our profits going forward." Legal issues include an
international probe into possible foreign-exchange market
manipulation. Investec Securities analyst Ian Gordon on Friday cut
the bank to sell from hold.
Capita PLC gave up 1.8% after Credit Suisse cut the
business-services company to neutral from outperform.
William Hill PLC lost 2.7%. The betting and gaming company said
first-half profit declined, mainly due to higher expenses.
Mining firms were also among the top decliners in Europe, as
investors moved out of sectors generally considered more risky.
Shares of Glencore PLC lost 1.1%, Rio Tinto PLC (RIO) fell 1.1% and
BHP Billiton PLC (BHP) gave up 0.9%.
Banco Espírito Santo shares tumbled 40% and were halted Friday
afternoon in Lisbon.
Risers
Belgacom SA rallied 4.8% after raising its full-year guidance
and posting a rise in second-quarter profit.
AXA SA climbed 1% after the insurer said first-half net profit
jumped 22%.
Shares of International Consolidated Airlines Group SA rose 2.2%
after the airline and British Airways parent reported a jump in
second-quarter profit.
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