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Europe shares up for 9th day; hit 6-1/2-month peak

Published 07/23/2009, 04:39 AM
Updated 07/23/2009, 04:48 AM

* FTSEurofirst 300 rises 0.2 percent; hits 6-1/2-month high

* Index gains for 9th straight day, longest run since 2006

* Financials advance after Credit Suisse results

* For up-to-the-minute market news, click on

By Atul Prakash

LONDON, July 23 (Reuters) - European shares rose for a ninth consecutive session to hit a 6-1/2-month high on Thursday, with reassuring results from Credit Suisse boosting banks and drugmakers advancing after Roche raised guidance.

At 0830 GMT, the FTSEurofirst 300 index of top European shares was up 0.2 percent at 892.17 points after touching 894.28 -- the highest level since January and the longest winning run since late 2006.

Banks were among the top gainers, with the DJ STOXX banking index up 1 percent, after Credit Suisse said it made a net profit of 1.6 billion Swiss francs ($1.50 billion) in the three months to end-June, against an average forecast of 1.4 billion Swiss francs given in a Reuters poll.

Credit Suisse was up 4.7 percent, while Standard Chartered, HSBC, Lloyds, Royal Bank of Scotland and Societe Generale gained 1.2-2.3 percent.

"Following the darker days of early July, we look set to be on another road to recovery. With every positive trading session, confidence levels return day by day, with optimistic rhetoric being heard from all angles," said Owen Ireland, analyst at ODL Securities.

"As August approaches, the traditional summer lull does not appear to be in existence, as markets continue to bound forward with gusto," he added.

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Drugmakers also gained ground after Roche gave a bullish forecast for the next two years following its $47 billion acquisition of Genentech and said it would expand capacity for H1N1 flu drug Tamiflu.

Roche was up 3 percent, while Elan Corporation, Actelion and Crucell rose 0.4-1.8 percent.

Across Europe, the FTSE 100 index, Germany's DAX and France's CAC 40 were almost flat.

MINERS GAIN, ABB JUMPS

Miners advanced after slipping in the previous session, with the DJ STOXX basic resources index rising 2 percent to a five-week high.

BHP Billiton, Anglo American, Antofagasta, Rio Tinto, Xstrata and Eurasian Natural Resources rose 0.8-2.3 percent.

Swiss engineering group ABB jumped 4.4 percent after it said cost-cutting measures had limited a fall in profit in the second quarter. But the group remained cautious for the rest of the year as customers hesitate about spending on equipment.

Kingfisher, Europe's biggest home improvements retailer, posted better-than-expected second-quarter sales as it grew market share, boosted by the growing trend for home and garden DIY and low cost room makeovers.

Its shares fell 0.6 percent, however, in line with weakness in other retailers. Morrison, J. Sainsbury and Tesco were down 0.7-1.2 percent.

Porsche's board of directors in an all-night meeting endorsed talks to sell a stake to the Gulf state of Qatar and to boost its finances with a capital hike of at least 5 billion euros. Its shares were up 0.6 percent.

Dutch telecoms group KPN fell 3.2 percent after it lowered its revenue outlook as it saw no signs of an economic recovery so far. (Reporting by Atul Prakash; editing by Simon Jessop)

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