* FTSEurofirst 300 falls 0.8 pct; hits 2-week closing low
* Banks among top losers; Ukrainian debt concerns weigh
* Energy shares fall as crude slips; defensives gain
By Atul Prakash
LONDON, Nov 20 (Reuters) - European equities slipped for a
fourth session on Friday to a two-week closing low as financials
lost ground on concerns over some banks' exposure to Ukrainian
debt, while weaker crude oil prices hurt energy shares.
The FTSEurofirst 300 <> index of top European shares
ended down 0.8 percent at 1,002.95 points, the lowest close
since Nov. 6. It fell 1.6 percent during the week after gaining
in the previous two weeks.
Banks were among the top losers as speculation over
Ukrainian debt resurfaced, even though analysts said there was
no fresh development to trigger the sudden fright.
Ukraine's acting Finance Minister Ihor Umansky said last
week that the state railway company was seeking to restructure a
$550 million syndicated loan organised by Barclays <BARC.L>
after failing to repay a portion of it. []
The DJ Stoxx European banking sector index <.SX7P> fell 1.5
percent, while Commerzbank <CBKG.DE>, Swedbank <SWEDa.ST>,
Societe Generale <SOGN.PA>, Deutsche Bank <DBKGn.DE>, Credit
Agricole <CAGR.PA> and UBS <UBSN.VX> dropped between 2.3 percent
and 3.7 percent.
European Central Bank President Jean-Claude Trichet said at
a banking conference that banks risk becoming addicted to cheap
central bank cash used to fight the financial crisis and must
prepare for its eventual withdrawal. []
But analysts said the recent weakness in equity markets was
not an indication of a trend reversal and positive momentum
remained intact.
"We had recent new highs in some of these markets so for
them to correct back now after having another strong run
probably wouldn't be too unusual," said Bernard McAlinden,
investment strategist at NCB Stockbrokers in Dublin.
"Having said that, they haven't broken convincingly to new
highs, so maybe the markets are levelling off and can become a
bit more volatile. May be they are running out of steam for now
on the upside," he added.
Energy shares tracked crude oil prices <CLc1>, which fell
more than 1 percent on a stronger dollar. BP <BP.L>, Royal Dutch
Shell <RDSa.L>, BG Group <BG.L>, Tullow Oil <TLW.L>, Repsol
<REP.MC> and Total <TOTF.PA> shed 0.2 to 1.4 percent.
Across Europe, Britain's FTSE 100 index <>, Germany's
DAX <> and France's CAC 40 <> fell 0.3-0.8 percent.
DEFENSIVE SHARES IN DEMAND
Defensive shares such as pharmaceuticals and food producers
saw some demand, with GlaxoSmithKline <GSK.L>, Merck <MRCG.DE>,
Novo Nordisk <NOVOb.CO>, Roche Holding <ROG.VX>, Sanofi-Aventis
<SASY.PA> and Shire <SHP.L> gaining 0.1 to 1.4 percent.
Among food producers, Danone <DANO.PA>, Kerry Group
<KYGa.I>, Unilever <ULVR.L> and Associated British Foods <ABF.L>
were up 0.5 to 1.6 percent.
Cadbury <CBRY.L> gained 1.3 percent. Business daily Il Sole
24 Ore said Italian chocolate maker Ferrero could be interested
in Cadbury's gum and candy division, a unit worth about 5
billion euros ($7.4 billion), in a possible joint takeover bid.
[]
"We're still stuck in a tight range and this could last
until December," said David Thebault, head of quantitative sales
trading at Global Equities in Paris.
Deutsche Telekom <DTEGn.DE> was down 0.5 percent. It is
keeping its options open for its U.S. business and is not close
to making a decision on the unit's mid-tem future, two people
familiar with the matter said. []
Travel operators TUI Travel <TT.L> and Thomas Cook <TCG.L>
fell 4 percent and 4.3 percent respectively after Morgan Stanley
downgraded the two companies, citing a weaker operating
environment and more expensive debt refinancing. []
"The recovery since March has come a long way in a
relatively short period of time," said David Jones, strategist
at IG Index. "It would probably take another 5 percent fall off
blue-chips from current levels to really spook investors."
(Additional reporting by Blaise Robinson; Editing by Greg
Mahlich)
