Investing.com - European chemical stocks were on the backfoot in midday trade on Monday, as investors fled the sector after BASF SE (DE:BASFN) slashed its full-year profit forecast.
Profits this year would decrease in the range of 15%-to-20% compared to 2017, BASF said. The firm had previously forecast a decline of up to 10% in 2018.
The company cited a drop in chemical prices, while low water levels on the Rhine and weak automotive demand especially in China were also to blame.
Shares in BASF plunged by as much as 5.5% after the open to touch their lowest level since early 2016. It was last down around 5% by 6:40AM ET (11:40 GMT).
BASF peers K+S AG (DE:SDFGn), Symrise AG (DE:SY1G), and Lanxess AG (DE:LXSG) all dropped by at least 3% in Frankfurt.
Elsewhere across the continent, Switzerland-based Sika AG (SIX:SIKA) lost 4%, while Imerys (PA:IMTP) sank 6% in Paris.
The losses helped to drag the pan-European Stoxx 600 Chemicals index down almost 2%, making it the worst-performing sector of the day.
-- Reuters contributed to this report