Stockholm shares close slightly higher on bargain hunting UPDATE

Stockholm shares close slightly higher on bargain hunting UPDATE

	Published : Wed, 21 Mar 2007 18:11 By : Agencies Print this Story

(updating with full report)

STOCKHOLM (AFX) - Stockholm shares closed slightly higher on bargain hunting amid easing fears over US sub-prime house lending, and expectations that the US Fed will opt to leave rates on hold this evening, brokers said.

The OMX Stockholm index closed up 0.69 pct at 391.75, and the OMX Stockholm 30 up 0.70 pct at 1,204.67. Turnover was 24.543 bln skr.

Major blue chip were in demand ahead of the distribution of more than 100 bln skr in dividends and buy backs next month.

Volvo B closed up 2.63 pct at 586. Volvo said its Volvo Aero unit and the Swedish Government are each investing 63 mln skr in a programme to develop lightweight components for more fuel efficient and more environmental aircraft engines.

The money will be invested 2007-2010.

Scania B closed up 0.77 pct at 522. Scania has proposed a full year 2006 dividend payment of 50 skr per share. The company also said today that it has won an order for 144 trucks from the Russian grocery chain X5 Retail Group.

Ericsson B closed up 1.18 pct at 25.75 skr on continued bargain hunting after the share's fall from 29 skr in January to 24 at the start of March.

Among the telecom operators, TeliaSonera closed up 0.41 pct at 60.75, and Tele2 B up 1.36 pct at 111.75.

SAS closed up 1.82 pct at 126. SAS' cabin crews in Denmark had a wildcat strike today after pay talks with the 1,600-member CAU union broke down yesterday evening, various media reported today.

SAS said it expects services to return to normal by tomorrow.

Among the blue chip engineers, Atlas Copco A closed up 1.33 pct at 228, SKF B up 1.44 pct at 140.50 and Sandvik up 1.50 pct at 118.25.

Among other heavily traded shares, Hennes & Mauritz B closed up 0.13 pct at 391, Skanska B up 1.03 pct at 147.75, and SCA B up 0.66 pct at 383.50.

TF.TFN-EuropeStockholm@thomson.com

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