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Technology Stocks : Nokia (NOK) -- Ignore unavailable to you. Want to Upgrade?

To: sisuman who wrote (4965)	5/22/2000 10:46:00 AM
From: slacker711	Respond to of 34857

Nokia Shares Fall on Concern Demand for Cell Phones Will Drop Espoo, Finland, May 22 (Bloomberg) -- Nokia Oyj, the world's biggest cellular phone maker, fell as much as 9.3 percent on concern rising interest rates will thwart economic growth and cut demand for wireless phones. The shares fell as much as 5.25 euros to 51.25, adding to an 8.5 percent slide on Friday. Economists expect further interest rate increases from the European Central Bank and the U.S. Federal Reserve to keep inflation at bay. Nokia, which has more than a quarter of the cellular phone market, gets two-thirds of its sales from cell phones. Rival Ericsson, the world's largest maker of wireless phone networks, gets some 70 percent of its sales from selling networks. Analysts see mobile phone business as riskier than the networks because it is easy to switch from one phone to another and the cost is low. ``I wouldn't be surprised if Nokia (shares) underperformed Ericsson in the short run because investors are looking to reduce risk,'' said Jussi Hyoety, an analyst at FIM Securities. Shares in Nokia, Europe's largest company by market capitalization, have risen 16 percent this year, less than the 24 percent by Ericsson AB but more than the 15 percent by Bloomberg Europe Telecommunication Equipment Index. Nokia's shares recently traded at 53.90 euros, down 2.60, or 4.6 percent.