EAC A/S, Venezuela’s biggest meat producer, fell to the lowest price in 11 weeks in Copenhagen after Danske Bank A/S said a change of political leadership isn’t improving conditions in the South American country.
EAC fell as much as 3.1 percent to 95 kroner, the lowest since Feb. 27. The stock declined 2.6 percent to 95.50 kroner at 10:28 a.m. in the Danish capital, with trading volume at 33 percent of the three-month daily average.
EAC gained 5.8 percent in the first quarter as President Hugo Chavez’s reign, which included currency controls and the seizure of more than 1,000 companies, came to an end. Nicolas Maduro, whom Chavez mentored, won the April 14 elections, which were followed by protests and threats against Spanish companies including Repsol SA. Opposition leader Henrique Capriles Radonski is contesting the results in court.
Danske has “abandoned the inclusion of a more benign Venezuelan scenario after the presidential election,” the bank said today in a note to client. The Copenhagen-based lender lowered its recommendation on the share to sell from hold, and cut its price estimate to 85 kroner from 105 kroner.
Danske also cited poor performance by Copenhagen-based EAC’s moving division in the first quarter for its lower recommendation. The unit reported a loss before interest and tax of 4 million kroner ($0.7 million) compared with a profit by the same measure of 16 million kroner a year earlier, according to a statement yesterday.