STOCKS NEWS EUROPE-DNO down 7.5 pct on Goldman cut, Iraq uncertainty

Oil firm DNO shares fall 7.5 percent after Goldman Sachs cuts the stock to 'sell' from 'neutral' and on continued conflict between the Iraqi national government and its Kurdistan region over oil exports.

Kurdistan has built a pipeline to carry crude oil through Turkey, drawing it into a conflict with the national government which argues that it has the sole authority to manage Iraqi oil and has threatened to cut off funding.

"I think there's two reasons (for the stock's fall): one is that Goldman downgraded the share and the other is the disagreement around the budget in Iraq and Kurdistan, and who is going to pay," Swedbank (Other OTC: SWDBF - news) analyst Teodor Sveen Nilsen said.

"I have cut DNO to neutral. The share has priced in high export volumes from Kurdistan and there's still uncertainty around that."

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