European stocks end higher as results please

European stocks rose for a second straight session yesterday and were near multi-year highs, boosted by solid quarterly results from German conglomerate Siemens and French insurer AXA.

But figures from Nokia disappointed and the oil and gas sector was rocked after Spanish major Repsol YPF slashed its proven oil and gas reserves.

Shares in Nokia, the world's largest mobile phone maker, fell 1.5 per cent after it said profitability suffered as it sold more low-priced phones, even though earnings matched analysts' estimates.

"It's positive they're selling more phones but negative that these are being sold at lower-than-expected prices," said Lex Werkheim of Eureffect Asset Manager.

The pan-European FTSEurofirst index of 300 leading shares ended 0.93 per cent stronger at an unofficial close of 1,303.1 points, adding to Wednesday's 1.1 per cent gain.

The benchmark index closed near a 4-1/2 year high of 1,312.9 points struck this month, following a 23 per cent gain last year.

Data showing US durable goods orders rose 1.3 per cent last month had little impact on prices but did hit German bund futures, which fell to their lowest level in over six weeks.

The report helped to give Wall Street a modest boost, along with strong earnings from Caterpillar Inc.

Siemens' first quarter net profit was below forecasts but its new orders jumped by about a third thanks to strong Asian demand and sent its stock more than six per cent higher.

Phillips, which reported forecast-beating figures on Monday, extended its gains for the week, putting on another 4.74 per cent, after Japanese rival Sony posted strong results and raised its outlook earlier in the day.

Shares in AXA rose 3.6 per cent after its 2005 sales topped market forecasts.

Repsol YPF stock lost 7.7 per cent after it chopped its proven oil and gas reserves by 25 per cent and said the cut would reduce 2006 net profit by between €170 million and €180 million.

Other heavyweight oil stocks also fell as investors fretted about any more potential reserve cuts in the sector and as US light crude futures gave up earlier gains and slipped back below $66 a barrel.

BP eased 0.9 per cent. Other standout losers included Hispano-French tobacco firm Altadis, down four per cent as rival Philip Morris cut tobacco prices in Spain.

On Wednesday, Altadis said it was raising prices of all its main brands to compensate for a government tax hike.