European shares edge lower as Nokia extends losses

Last Updated: Fri, Jan 25, 2013 08:20 hrs

LONDON, Jan 25 (Reuters) - European shares edged lower on Friday, led by a fall in handset maker Nokia, but a key index kept within sight of multi-month highs and charts suggested further gains were on the cards.

Nokia shed 2.9 percent, extending a selloff in the previous session, as analysts cut their estimates for the firm after it axed its annual dividend payment for the first time against falling sales.

The euro zone Euro STOXX 50 index was flat at 2,721.97 at 0815 GMT, continuing to hover around a technical resistance at around 2,722, which corresponds to the 100 percent Fibonacci projection of a rally in the second half of 2011.

"We've been hugging the resistance for several weeks now and that really shows the lack of seller," Anders Soderberg, chief technical analyst at SEB in Stockholm.

"I think we're going to see one more high within this sequence before we make a more profound correction."

The broader FTSEurofirst 300 index of pan-European shares was down 0.2 percent at 1,169.19 points.

More from Sify: