Shares in telecom equipment maker Nokia saw volatile early trade today after yesterday's earnings relief rally, and brokers forecast a bumpy session due to a convergence of technical factors.
At 8.30 a.m. Nokia was off 0.3 per cent at euro 27.70, reversing a positive open after yesterday's 13 per cent surge. The stock is well below its June 2000 life-high of euro 65.0.
Brokers said Nokia would be caught between selling pressure from profit takers after the stock's strong gains yesterday and buying support from a rejigging of the Euro Stoxx 50 index which will boost Nokia's weighting.
Yesterday, Nokia reiterated its first-quarter earnings forecast of flat year-on-year earnings per share of euro 0.19 euros but admitted it was not immune to reduced demand for mobile phones, announcing a reduction in its first-quarter sales growth forecast amid an economic slowdown in the United States.