(Updating with full report)
OSLO (Thomson Financial) - Share prices closed higher, led up by Norske Skog (NSG), adding to Friday's rise following a recent tumble, and by TGS-Nopec Geophysical and Wavefield Inseis, while Tandberg Data was down on the impact of short-term financial problems, and Frontline fell as it went ex-dividend, dealers said.
The OSEBX Benchmark index closed 7.55 points higher at 482.86 and the OSEAX All Share index rose 7.97 points to 562.00.
Total turnover amounted to 12.14 bln nkr.
'The market has been a bit more optimistic today,' a dealer said. 'It's only natural when you have had four to five to six weeks of negative sentiment that you get at least a few days with a more positive note. Also, the market took a lead from the US so-called Black Friday retail sales, which were very good.'
Norske Skog closed 1.3 nkr higher at 35.5, adding to Friday's rise after CEO Christian Rynning-Tonnesen said the paper firm's current share price 'is too low'.
The stock tumbled recently on a combination of rising input prices and lower sales prices, which have together conspired to wipe out the benefits of the group's wide-ranging turnaround programme.
Yara International was unchanged at 197.75. Morgan Stanley upped its target on the stock to 230 nkr from 227 on a reiterated 'overweight' stance.
TGS-Nopec Geophysical was up 3.5 at 76 and Wavefield Inseis added 1.6 to 41.3. They have announced a merger, which Wavefield shareholders a week ago voted to postpone, dealers said.
'According to a news report, which came out just after noon, the Wavefield CFO said he was optimistic that they would reach a solution over the planned merger,' one dealer said. 'People take this as a more conciliatory tone from Wavefield, which has been pretty hostile recently to TGS.'
Seismic peer Petroleum Geo-Services rose 3.25 to 151.
Frontline fell 2.75 to 247.75, but the shares traded excluding a 1.50 usd dividend.
Prosafe added 1.3 to 95.4. Keppel said its unit Keppel Shipyard has won a 100 mln sgd deal from Prosafe to convert an oil tanker into a floating drilling, production, storage and offloading facility. The project is expected to be completed in late 2008.
Stolt-Nielsen was 1.5 higher at 136. The stock traded excluding a 0.50 usd dividend.
Awilco Offshore rose 0.6 to 60.3. The oilfield services company has signed a drilling contract with BP Norge, to supply its semi-submersible drilling rig WilPioneer in a three-year deal worth 330 mln usd.
Dealers said prices for North Sea crude have firmed since Friday, helping lift oil stocks.
StatoilHydro was up 3.5 at 177.2. Handelsbanken Capital Markets raised its target on the stock to 200 nkr from 193 on a repeated 'accumulate' rating.
StatoilHydro has begun a two-year drilling programme in Arctic waters to determine the potential of Norway's share of one of the world's few remaining unexplored oil prospects, the Financial Times reported.
DNO rose 0.07 to 8.97. Carnegie, which has a 'neutral' recommendation on DNO, said about 6 nkr of its fair value price of 11.6 nkr is represented by the firm's Iraqi assets, where there are again about the validity of its oil licences in Northern Iraq, dealers said.
Seadrill added 5.75 to 120, Fred Olsen Energy was 5 higher at 272 and Subsea 7 rose 4 to 136.
Tandberg Data was 0.43 lower at 2.7 on fears that short-term financing problems could impact its current and next quarter operations, dealers said.
'The market is worried because the company put out a press release that it is looking for alternative short-term financing to the tune of 7 mln usd,' said an analyst. 'General market sentiment is up, but sentiment for Tandberg Data is now very bad.'
Tandberg rose 4.75 to 118.5.
Telenor was 2.75 higher at 130.25 on speculation that a solution has been found to the firm's damaging dispute with Russia's Alfa Group over control of Ukrainian mobile firm Kyivstar, dealers said.
SEB Enskilda analysts said reports have emerged suggesting that Alfa has withdrawn the injunction preventing Kyivstar from publishing its financial figures.
This, the broker says, could mean that Telenor can once again include the contribution from Kyivstar in its profit and loss account, probably in the form of an associated company.
DnB NOR Markets said it has raised its price target on Telenor to 157 nkr from 150, while maintaining its 'buy' recommendation.
On top of the Kyivstar news, the broker pointed out that Vimpelcom's third-quarter results are due this week, and that this should also be a positive catalyst for the Telenor share. Telenor has 29.9 pct of Russia's Vimpelcom, while Alfa has 44 pct.
Aker added 1 to 340 after the group's 53 pct-owned unit Aker American Shipping said it has decided to split the company's business activities into a ship-owning company and a shipyard. Aker aims to buy a sufficient number of shares in the offering to maintain an ownership interest in APS of at least 53 pct.
Aker Kvaerner rose 5 to 170, while Aker Yards was down 0.75 at 84.75 and Norsk Hydro shed 1.2 to 71.
Storebrand rose 2.1 to 64.2. The insurer said the subscription period for its recently-announced rights offering is now open.
DnB NOR added 0.4 to 84.6, Orkla was 0.4 higher at 98, Schibsted rose 3 to 250 and Renewable Energy Corporation added 3 to 247. michael.delaine@thomson.com mdl/rw COPYRIGHT Copyright Thomson Financial News Limited 2007. All rights reserved. The copying, republication or redistribution of Thomson Financial News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Financial News.
© 2007 AFX News
