STOCKS NEWS EUROPE-Absence of cash returns hits Intercontinental Hotels

Shares in Intercontinental Hotels (Other OTC: ICHGF - news) fall by more than 4 percent, making it the worst-performing FTSE 100 stock in percentage terms, as analysts express disappointment over the lack of further cash returns from the world's largest hotelier.

"No further capital returns have been announced, possibly disappointing those expecting an imminent catalyst," Nomura analysts write in a research note, keeping a "neutral" rating on the stock.

Numis Securities downgrades Intercontinental Hotels to "hold" from "add", again citing disappointment over the lack of cash returns from the company and uncertainties about China.

InterContinental Hotels' shares are down by 4.3 percent at 1,960.60 pence in early session trading, losing ground after the stock had risen by around 3.5 percent in the two sessions prior to the announcement of the company's annual results on Tuesday.

Volume on InterContinental shares was nearly 90 percent of its full-day average for the past three months at 0950 GMT, making it the most heavily traded stock on Britain's FTSE 100 index in relative terms. Volume on the FTSE was a fifth of its own 90-day average.

The disappointment over the absence lack of cash returns from Intercontinental Hotels overshadows a 10 percent rise in 2013 profits reported by the company.

Reuters messaging rm://sudip.kargupta.thomsonreuters.com@reuters.net