European shares drift lower, Colruyt knocked

martes 24 de junio de 2014 07:19 GYT
 

* FTSEurofirst 300 off 0.2 pct, retreats from 6-1/2 yr high

* Colruyt down; warns of tough year ahead after profit fall

* Syngenta surges on report of Monsanto bid interest

By Tricia Wright

LONDON, June 24 (Reuters) - European shares retreated after a firmer start on Tuesday, with Colruyt among the biggest fallers on downbeat earnings, while the broader market was unable to gain traction from new signs of corporate takeover activity.

Colruyt fell 3.1 percent to a 2-1/2 month low, in brisk trade, as the Belgian discount retailer warned of a difficult year ahead after posting a slight drop in profits.

"They have a good strategy, but the market is really against them. Competitors are also focusing on volumes, with very low food inflation," Bank Degroof analyst Hans D'Haese said.

The Belgian supermarket landscape has been fiercely competitive over the past few quarters, also due to Dutch rival Ahold's Albert Heijn entering the market and German hard discounters Aldi and Lidl gaining ground.

Trading volume in Colruyt was robust, at three quarters of its 90-day daily average.   Continuación...