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    April 21, 2006

    Eurofirst up on earnings reports

    Filed under: Societe Generale, ThyssenKrupp, Eon, Nokia, Ericsson, Akzo Nobel, Fortum

    In Europe this week, the FTSE Eurofirst 300 was up 2 percent to 1,397.07. This four and a half year high came even though crude oil prices were up into record territory.

    Finnish utility Fortum was the week’s biggest gainer, ahead of a first-quarter report, due next Tuesday, which is expected to show earnings up by 20 percent. Most of the gains came on increased prices for electricity. Fortum added 12.7 percent to €23.13.

    Other double-digit gainers this week included German steel maker ThyssenKrupp and Dutch chemicals group Akzo Nobel. ThyseenKrupp was up 10.2 percent during the week to €26.83 ahead of quarterly results due May 12. UBS reiterated its “buy” recommendation and increased the steel maker’s target share price from €25 to €30. Meanwhile, Akzo Nobel advanced by 10.1 percent to €47.83 on a better than expected quarterly report.

    In the telecommunications sector, Nokia added 7.1 percent on the week to €18.65 on a positive earnings report. Swedish telecom Ericsson, however, lost 9.8 percent this week to SKr26.60 on a quarterly report that showed profits flat.

    German utility Eon was up 7.1 percent to €97.60 after it was announced that Eon will take a stake in Gazprom’s Siberian gas field while Gazprom will take part of Eon’s Eastern European operation.

    In the banking sector, French bank Societe Generale added 3.9 percent this week to €124.10 on the announcement that it will buy Splitska Bank in Croatia.





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