Starlink worry hits telecommunications firms

2 hours ago

(AWP Alliance News) - The following stocks are the leading risers and fallers in Europe's major stock indices on Friday.

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CAC 40 winners

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ArcelorMittal SA, up 5.0% at EUR56.92, UBS raises to 'buy' from 'neutral'

EssilorLuxottica SA, up 3.2% at EUR147.55

Capgemini SE, up 3.2% at EUR114.35

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CAC 40 losers

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Orange SA, down 3.4% at EUR13.75, telecommunications sector slumps

TotalEnergies SE, down 1.0% at EUR76.79, oil price weakens as US president rules out more Iran strikes before midterms

Bouygues SA, down 0.6% at EUR40.37

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DAX 40 winners

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Zalando SE, up 4.6% at EUR23.85

SAP SE, up 3.2% at EUR190.50, software boosted as sentiment towards AI weakens

Heidelberg Materials AG, up 3.0% at EUR144.00, RBC raises to 'outperform' from 'sector perform'

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DAX 40 losers

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Deutsche Telekom AG, down 7.9% at EUR24.72, owns large stake in T-Mobile US Inc, which trades 7.05 lower in pre-market trade after Starlink news

Rheinmetall AG, down 1.1% at EUR924.40, Berenberg cuts to 'hold' from 'buy'

BASF SE, down 0.1% at EUR51.70

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FTSE 100 winners

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Sage Group PLC, up 4.8% at 1,077.00p, software sector surges

Relx PLC, up 3.9% at 2,696.50p, also boosted by AI sector nerves

Antofagasta PLC, up 3.6% at 3,733.00p

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FTSE 100 losers

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Vodafone Group PLC, down 4.3% at 119.08p, tumbles as US telecoms peers fall

Airtel Africa PLC, down 4.3% at 296.40p, tracks wider telecom sector lower and investee floats in London

BT Group PLC, down 2.2% at 193.18p, the trio of worst performers on the FTSE 100 are all in the telecommunications sector

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MIB 40 winners

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Fincantieri Spa, up 3.0% at EUR12.04

Inwit Spa, up 2.9% at EUR6.92

Buzzi Spa, up 2.7% at EUR36.97

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MIB 40 losers

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Eni Spa, down 0.7% at EUR24.70, down as tracks oil lower

STMicroelectronics NV, down 0.4% at EUR47.83

Tenaris SA, down 0.3% at EUR25.18

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SMI 20 winners

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Sika AG, up 2.8% at CHF175.60

Amrize AG, up 2.6% at CHF30.75

Geberit AG, up 2.1% at CHF534.60

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SMI 20 losers

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Sandoz Group AG, flat at CHF69.34, worst performer on index

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European stock movers in focus:

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Deutsche Telekom, down 7.9% at EUR24.72, 12-month range EUR23.53-EUR34.36. Space Exploration Technologies Corp on Thursday said it has agreed to acquire a nationwide low-band spectrum licence portfolio to help Starlink Mobile become "a major mobile carrier in the US". Telecommunications shares sink as a result. "Shares in AT&T, Verizon and T-Mobile fell on the news that Starlink is to become more of a mainstream player. Naturally, the same sentiment was felt on the other side of the pond as it gave European telecoms operators a reason to view Elon Musk's outfit as a more serious longer-term competitive threat. Vodafone, Airtel Africa and BT were the biggest fallers on the FTSE 100," AJ Bell analyst Russ Mould comments. Deutsche Telecom's exposure also comes through T-Mobile US Inc. Deutsche Telecom owns around 53% of T-Mobile US.

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Sage Group, up 4.8% at 1,077.00p, 12-month range 771.66P-1,181.00p. Stocks once hurt by AI trade, shine on Friday. Nerves over AI, now stemming from a report on OpenAI Group PBC , supports software shares. OpenAI is bringing in about USD20 billion less in annualised revenue than investors had been led to believe, the Financial Times reported Thursday, raising questions about the solidity of the AI business. Citing documents shared with OpenAI's financial backers, the FT said the company put its annualised revenue at close to USD50 billion as of the end of September. Media reports late last month had pegged the figure at USD70 billion based on information given to investors.

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Porsche AG, up 1.6% at EUR41.61, 12-month range EUR35.62-EUR50.66. The luxury carmaker says worldwide deliveries in the first nine months of the year amount to 178,532 cars, down from 212,509 a year prior. "Deliveries in the third quarter developed in line with the trend seen at the half-year mark. Compared to the previous year, deliveries remain down 16 per cent after nine months, unchanged from the first-half result," Porsche says. "In a persistently challenging market environment, the company continues to consistently pursue its value-oriented sales strategy and maintain a balanced relationship between supply and demand." It hails its "highly sought after" Porsche 911, which has seen deliveries growth of 12%.

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Airtel Mobile Commerce NV, trades at 194.36p in London on Friday, down 0.8% from 196p initial public offering price. Share price trading range on Friday, 194.00p-200.05p. London has a new major listing on Friday in the form of Airtel Mobile Commerce, or Airtel Money. It debuts with a GBP5.3 billion market capitalisation, a boost for a London market starved of major listings in recent years. Major shareholder Airtel Africa says: "Airtel Africa is not selling existing Airtel Money shares in the offer and is expected to remain a long-term strategic shareholder and to support Airtel Money's next phase of development as an independently listed business."

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By Eric Cunha, Alliance News news editor

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