* FTSEurofirst 300 index closes 0.5 pct lower
* Drugmakers reverse previous gains
* Greek banks spurred by euro zone agreement
By Brian Gorman
LONDON, March 26 (Reuters) - European shares closed lower on
Friday, with drugmakers giving up some recent gains, and energy
companies lower on weaker crude prices after data showed slower
growth in the U.S. economy than previously reported.
The FTSEurofirst 300 <> index of leading European
shares fell 0.5 percent to close at 1,077.52 points, having hit
its highest close since early October 2008 in the previous
session.
Over the week, the index rose 1.1 percent, notching up its
fourth straight weekly gain. It is up more than 66 percent from
its lifetime low of March 9, 2009.
Analysts noted Friday's pull-back having had come after a
strong run, but some said the market was now looking expensive.
"It is likely that the newsflow coming up will disappoint,
compared with the high level of expectations," said Tammo
Greetfeld, equity strategist at UniCredit Group.
"The market had benefited from the relief that the EU has
agreed a support mechanism for Greece. But the underlying causes
of the tensions are not resolved yet."
Pharmaceutical stocks were among the biggest losers, not
helped by German plans to cut patented drug prices.
[]
Shire <SHP.L>, GlaxoSmithKline <GSK.L>, Novartis <NOVN.VX>,
Roche <ROG.VX> and Sanofi-Aventis <SASY.PA> fell between 1.1 and
1.9 percent.
On the upside, Greek lenders <.FTATBNK> surged 8.4 percent,
encouraged by an agreement by euro zone leaders for a package
for debt-laden Greece under which Athens would receive both
bilateral loans from euro zone partners and International
Monetary Fund funding if it faced severe difficulties.
[]
National Bank <NBGr.AT>, EFG Eurobank <EFGr.AT>, Piraeus
Bank <BOPr.AT> and Alpha Bank <ACBr.AT> rose between 8.1 and
12.7 percent.
The Greek stock market was closed on Thursday for a holiday.
Concerns remain, however, over how the debt burden would be
managed in practice and over the fiscal health of other euro
zone peripheral countries.
OILS FALL
Energy companies suffered as crude prices <CLc1> fell below
$80 a barrel following the U.S. GDP data, and after data earlier
in the week showed U.S. crude inventories rising.
BP <BP.L>, BG <BG.L> and Royal Dutch Shell <RDSa.AS> fell
between 0.5 and 1.7 percent.
The U.S. economy grew at a slightly less brisk pace in the
fourth quarter than previously estimated, while corporate
profits slowed sharply from the prior quarter, government data
showed. []
U.S. consumer sentiment ended unchanged in March from
February, a survey showed, slightly beating expectations.
Across Europe, the FTSE 100 <>, Germany's DAX <>
and France's CAC 40 <> shed 0.1 to 0.3 percent.
UniCredit's Greetfeld forecasts the DAX to fall to 6,000,
down 2 percent from its current level.
He said: "We think equity markets will be in a sideways
movement or correction phase for several months."
"The U.S. non-farm payrolls next week will be important, and
we will see whether the market has already factored in the
effect of the government hiring for the census."
Wall Street was higher around the time European bourses were
closing. The Dow Jones <>, S&P 500 <.SPX> and Nasdaq
Composite <> were up between 0.1 and 0.2 percent.
Among individual movers, Spain's Abertis <ABE.MC> fell 3.4
percent after one of its savings bank shareholders, CAM, sold
1.7 percent of the infrastructure firm through a placement with
Credit Suisse.
(Editing by Will Waterman)
