Reuters - Nokia shares fall before MSCI index change: traders

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Nokia shares fall before MSCI index change: traders

Friday, Aug 29, 2008 12:26PM UTC

HELSINKI (Reuters) - Shares in the world's top cell phone maker Nokia <NOK1V.HE> fell sharply on Friday as an imminent change in a key MSCI index put pressure on the stock price, traders said.

Shares in Nokia were 2.6 percent lower at 17 euros by 8:11 a.m. EDT, weighing on the DJ Stoxx European technology index <.SX8P> which was 1.1 percent weaker. The shares traded as low as 16.90 euros.

"The index is being rebalanced tonight and the proforma number of Nokia shares is going to decrease," said an MSCI Barra spokesman.

Traders in Helsinki said the rebalancing in the closely followed index meant that some 8 million shares in Nokia were to be sold, hurting the stock.

Nokia declined to comment.

Traders added that Nokia was also pressured by gloomy comments from its closest rival Samsung <005930.KS> in the Wall Street Journal on Friday, which increased fears that the economic downturn would hurt consumer product demand during the key Christmas sales period.

"The seasonal gain is being overcome by the macroeconomic weakness," the paper quoted Samsung's investor relations head, Chu Woosik, as telling an investment conference in Seoul.

"We see the markets in the U.S. and Europe are softening quite a bit, although emerging-market demand seems to be holding quite well," he was quoted as saying.

(Reporting by Tarmo Virki in Helsinki and Sitaraman Shankar in London; Editing by Erica Billingham)