BUZZ-UPM: worst day in 8 months on Goldman downgrade

** Finnish paper co UPM (Taiwan OTC: 4752.TWO - news) falls 7.4 pct as Goldman Sachs downgrades to conviction "sell" from "hold"

** In a sector note broker says it sees supply of pulp (50 pct of UPM's EBIT) significantly outstripping demand (4 pct supply growth v 2 pct demand growth forecast for 2016)

** Adds China an issue as the country has accounted for 95 pct of incremental pulp demand since 2005

** Goldman sees 32 pct downside to UPM share price as at Wednesday's close

** Worst day for stock since April (LSE: 0N69.L - news) 2015

** Fourth top faller on Stoxx 600

** Goldman reiterates conviction "buy" on Smurfit Kappa (LSE: SKG.L - news) ; Mondi (LSE: MNDI.L - news) and Stora both at "sell"

(RM (LSE: RM.L - news) : alasdair.pal.thomsonreuters.com@reuters.net)