Metso Falls as ABG Warns on Outlook for Orders: Helsinki Mover
Metso Oyj (MEO1V), a Finnish maker of rock crushers and paper machines, slumped the most in four months in Helsinki trading after ABG Sundal Collier Holding ASA expressed concern over the outlook for orders.
Metso slid as much as 4.1 percent, the most since Oct. 25. Shares in the Helsinki-based company were down 2.6 percent at 31.76 euros as of 11:29 a.m. local time. That was the second- worst performance in the OMX Helsinki 25 index after Nokia Oyj. Volume exceeded 350,000 shares, about half of the three-month daily average.
“Low order activity will likely persist for the next few months,” ABG analysts, including Johannes Grunselius, said in a report today, downgrading the stock to sell from hold.
Orders for mining equipment suppliers are on the decline as all major commodities have passed their price peaks, the report said. Increased political risks for new large mining projects have left miners “more cautious” in their investment decisions, it said.
FLSmidth & Co A/S (FLS) dropped as much as 3 percent to 373.30 kroner, making it today’s biggest decliner among Danish benchmark stocks. Outotec Oyj (OTE1V) fell as much as 3.3 percent to 49.20 euros in Helsinki, the largest intraday drop since October.
“We believe that this complex but negative theme for investment growth is not fully recognised for the mining equipment companies,” the ABG analysts said. “The market will remain very competitive and if anything we expect competition to become even more intense.”
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