Stockholm shares slightly higher midmorning on positive sentiment

Stockholm shares slightly higher midmorning on positive sentiment

	Published : Mon, 05 Feb 2007 11:09 By : Agencies Print this Story

STOCKHOLM (AFX) - Shares were slightly higher in midmorning trade, lifted by underlying positive sentiment in quiet trade, with Ericsson outperforming on bargain-hunting after Friday's losses, and Volvo higher following an upgrade to 'buy' at Deutsche Bank, brokers said.

At 10.40 am, the OMX Stockholm index was up 0.33 pct at 388.68, and the OMX Stockholm 30 up 0.34 pct at 1,191.08.

Brokers said positive sentiment following recent good company results and upbeat outlook statements are maintaining momentum in a bull market.

'The market is up because the market is trending upwards -- that's the only reason. And as long as nothing comes out that will hurt us -- such as weakness in the US -- this market, it won't go down,' said broker.

'It's (a) bull market, everything that comes out seems to be positive, people are coming out with bullish statements such as Sandvik, AstraZeneca. So on a quiet day we simply trend upwards'.

Ericsson B was up 1.17 pct at 26.05 skr bid, with Swedish commentators saying Friday's losses following the company's Q4 results were an over-reaction.

Carnegie upgraded the stock to 'Neutral' from 'Underperform'.

'Long-term challenges persist but we expect cost-cutting and Sony Ericsson

to offset the gross income decline in H1, resulting in pretax profit growth year-on-year,' said Carnegie.

'We also believe short-term consensus is now more reasonable. We are surprised the company lowered its market forecast in this report, having

said that we still believe the company's new guidance of plus 5 pct is too bullish.

Nokia was up 0.65 pct at 154.50.

Volvo B was up 1.95 pct at 523, and Scania B up 1.76 pct at 519.

Shares in Volvo were upgraded to 'buy' from 'hold' by Deutsche Bank, as the broker raised its price target to 600 skr to reflect the group's improving profitability.

The bank said it believes Volvo's margin could reach 10 pct in 2008.

It said the 49 pct increase in the regular dividend is a sign that management confidence is also increasing.

In the construction sector Skanska B was up 2 pct at 153.

Engineering stocks were mixed. Atlas Copco A was down 0.43 pct at 232.50 after the company said it has bought Swedish road construction and paving equipment supplier Dynapac AB from Altor 2003 Fund for 6.3 bln skr, of which 2.1 bln skr is assumed debt.

Atlas Copco said the acquisition will 'strengthen its position in an expanding global market and add a new range of products for construction customers worldwide'.

Sandvik was up 0.44 pct at 115.25, SKF B up 0.18 pct at 137, and Alfa Laval B down 1.21 pct at 325.50.

Among other major stocks, SEB A was down 0.85 pct at 233, Boliden up 0.96 pct at 158, Hennes & Mauritz B up 0.13 pct at 375, and Electrolux B up 0.95 pct at 133.

simon.richardson@thomson.com

sjr/cmr

The copying, republication or redistribution of AFX News Content, including by framing or similar means, is expressly prohibited without the prior written consent of AFX News.

AFX News and AFX Financial News Logo are registered trademarks of AFX News Limited