March 4 (Bloomberg) -- Nokia Oyj shares fell to their lowest level in three months in Helsinki trading after Stoxx Ltd. said it’s removing the stock from the Euro Stoxx 50 index and on concern its smartphones are losing market share.
The shares dropped 2.5 percent to 2.65 euros at the close of trading in Helsinki, the lowest price since Dec. 4, cutting the Espoo, Finland-based company’s market value to 9.9 billion euros ($13 billion). The stock has fallen 9.3 percent this year.
Nokia is depending on its partnership with Microsoft Corp. to help win back smartphone users from Apple Inc. and devices running Google Inc.’s Android software. Fewer Google searches for the Lumia 920, which runs Microsoft’s Windows phone software, from its peak in November may mean that demand will plateau at today’s “low” levels and it’s unlikely to see the increase in shipments that many expect, said Pierre Ferragu, a London-based analyst at Sanford C. Bernstein, said in a note today.
“Over the year, Nokia will also likely face pricing pressure to shift inventory which will have a negative impact on profitability,” said Ferragu, who has an underperform recommendation on the stock and a price target of 1.20 euros.
Nokia will exit the Euro Stoxx 50 March 18, Stoxx said. That means fund managers that base their portfolio on the index’s composition will need to sell the stock.
To contact the reporter on this story: Adam Ewing in Stockholm at email@example.com
To contact the editor responsible for this story: Kenneth Wong at firstname.lastname@example.org