European shares pause as broadcasters sag after updates

miércoles 14 de mayo de 2014 10:55 GYT

* FTSEurofirst 300 down 0.1 pct, retreats from 6-year high

* Media stocks lead fallers as Mediaset, ITV disappoint

* Portugal stocks sag; talk of capital hike hitting banks

By Francesco Canepa

LONDON, May 14 (Reuters) - European shares paused on Wednesday as some weak corporate updates, especially in the media sector, led investors to seek a pause in a two month-rally propelling many regional indexes to multi-year highs.

The STOXX Europe 600 media index fell 1.2 percent, the worst performer among sector indexes, as disappointing results by broadcasters ITV and Mediaset cast a shadow on a strong reporting season so far for the industry.

Around 67 percent of media companies in the STOXX Europe 600 index that reported results through May 13 met or beat consensus estimates, compared to 49 percent for the index as a whole, StarMine data showed.

Shares in ITV, which will broadcast the World Cup finals in June, had risen 5 percent over the previous two weeks, suggesting investor expectations going into the results were high.

"The market was looking for a set of numbers that would allow for upgrades to consensus forecasts and they did not get that today," David Reynolds, an analyst at Jefferies & Company, said.   Continuación...