* Oils, utilities slip
* Volkswagen gains after Porsche refinancing deal
* Reuters poll forecasts tough 2009
By Joanne Frearson
LONDON, March 26 (Reuters) - European shares closed higher
on Thursday in a choppy session as gains in the banking and
mining sectors overshadowed losses in oils and utilities.
The pan-European FTSEurofirst 300 <> index of top
shares closed up 0.2 percent at 745.33 points, having climbed as
high as 747.83 points and fallen to 737 earlier in the session.
"Investors are trying to strike a balance between a
resurgence in optimism and consolidation, and until one
outweighs the other, the markets will continue to seesaw
sideways," said Joshua Raymond, market strategist at City Index.
The banking sector was higher, although stocks within the
sector were mixed. HSBC <HSBA.L>, Barclays <BARC.L>, Lloyds
Banking Group <LLOY.L> and BNP Paribas <BNPP.PA> were up
1.9-13.5 percent, while UBS <UBSN.VX>, Standard Chartered
<STAN.L> and Credit Suisse were down 0.4-3.8 percent.
Miners gained as copper <MCU3=LX> rose 3.9 percent. Anglo
American <AAL.L>, Antofagasta <ANTO.L>, BHP Billiton <BLT.L>,
Eurasian Natural Resources Corporation <ENRC.L>, Rio Tinto
<RIO.L> and Xstrata <XTA.L> were up 0.7-16.9 percent.
Volkswagen <VOWG.DE> was 7.6 percent higher after a 10
billion euro refinancing deal for parent company Porsche
<PSHG_p.DE> sparked speculation the automaker will increase its
stake in Europe's largest carmaker. []
Across Europe, the FTSE 100 <> index was up 0.6
percent, Germany's DAX <> was 0.9 percent higher and
France's CAC 40 <> was down 0.05 percent.
OILS, UTILITIES FALL
Energy stocks were weaker. BG Group <BG.L>, Galp Energia
<GALP.LS>, Royal Dutch Shell <RDSa.L> and Petroplus <PPHN.VX>
were down 1-2.3 percent.
Utilities were in the doldrums. German power utility E.ON
<EONGn.DE> lost 1 percent after German daily Handelsblatt,
citing company sources, reported that the group and smaller
domestic rival RWE <RWEG.DE> have placed joint bids for three
British nuclear sites. []
Fashion chain Hennes & Mauritz AB <HMb.ST> slipped 3.5
percent after the group posted a surprise 13 percent fall in
first-quarter pretax profit as unfavourable currency swings took
the shine off robust sales. []
Meanwhile, a Reuters poll has showed world stock markets are
expected to face a tough 2009 following a dismal 2008.
[] []
France's CAC 40 stock index is expected to edge lower in the
next quarter as the recent rally fizzles out, before it bounces
back in the second part of the year to end 2009 roughly
unchanged. [] []
"The CAC will continue to head downward, hurt by gloomy
macroeconomic data, poor corporate results and big capital
hikes, but a floor should be reached within the next three
months," said Fortis Investments fund manager Pierre Chatain,
who expects the CAC to be at 2,500 points in mid-year, and at
3,200 points at year-end.
However, Britain's FTSE-100 index <> is expected to
gain 15 percent from current levels but be essentially unchanged
on the year. [] []
Germany's benchmark DAX index could gain over 11 percent
from current levels over the next 9 months but will mark a loss
of just over 2 percent on the year. [] []
(Editing by David Cowell)
