Syngenta bounces back from overselling

Date:05-29-2009

Shares in agrochemicals company Syngenta AG  gain 1.3 percent, outperforming a 0.6 percent fall in the European chemicals sector .SX4P, as investors reassess its sharp fall the previous day after a disappointing sales outlook from competitor Monsanto.

 

"People think the stock might have been oversold yesterday as Syngenta wont be hit as hard as Monsanto by falling herbicide sales," a trader says.

 

Vontobel analyst Patrick Rafaisz agrees: "While this is clearly bad for sentiment towards all agrochemical companies, we expect Syngenta to be much less affected as Monsantos crop protection business almost exclusively consists of non-selective herbicides versus 15 percent at Syngenta."