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Dutch shares

close decline

AMSTERDAM: Dutch shares extended losses on Wednesday as investors took profits in quality stocks such as publishers, while stock picking in cyclicals. Continuing dollar strength failed to offset selling pressure.

The AEX index closed down 2.55 points at 545.68, as the index continued its decline after hitting a closing high on Monday of 549.00 points.

Volume was reasonable and investors said the high levels were still supported by sufficient trading, while one dealer also noted that Thursday's Bundesbank meeting was not seen as a major event for the Dutch stock market.

"Whether short-term interest rates will drop is not such a big deal. They're low as they are and they don't offer investors a good alternative," the trader said.

Many traders emphasised that no investors were suffering from vertigo.

"There's no one with fear of heights. The institutions which are capable of driving the index are not selling," one said.

Trade concentrated on buying of stocks which had lagged behind the recent rally and selling of blue chips which had performed well. Elsevier lost 80 cents due to profit taking, closing at 26.70 guilders after it peaked at 27.90 on Monday.

Rival publisher VNU also lost ground, shedding 1.00 guilder at 29.10.

The sudden retracement of Elsevier explained almost one full points of the AEX's decline as the stock weighs heavily in the index.

But chemicals and plastics makers Akzo Nobel and EVC benefited from stock picking, rising 2.00 guilders to 189.60 and 1.90 to 58.80 guilders respectively.

Rival DSM traded in postive territory for most of the session, as did Philips, but both ended neutral on the day.-Reuter