STOCKS NEWS EUROPE-AstraZeneca hit after share buyback stopped

Shares in British pharmaceutical company AstraZenecadrop 1.5 percent, the biggest loser on the UK blue-chip FTSE 100, after the company suspends its share repurchaseprogramme with immediate effect.

The surprise announcement drives heavy demand to sell thestock, with volumes hitting 1 1-2 times the 90 day averageagainst 50 percent for the broader index.

AstraZeneca shares plummeted on the news, losing 3 percentin the first half an hour after the announcement to hit anintraday low before recovering.

"Share repurchases are supportive to the stock price on aday by day basis, so there's a couple of billion dollars worthof demand over the rest of the year that won't be satisfied bythe company purchasing in the market," says Mark Clark, industryanalyst at Deutsche Bank.

AstraZeneca said the move was a "prudent step to maintainflexibility", raising concerns among some investors that new CEOPascal Soriot is seeking to preserve cash ahead of potentialacquisitions.

"What it probably reflects is a concern that there's going tobe a more aggressive M&A (mergers and acquisitions) strategypursued by (new CEO) Soriot," Mick Cooper, analyst at EdisonInvestment Research, says.

"This action adds a bit more uncertainty over what the nextstrategy is going to be."

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