(Updating with full report)
OSLO (Thomson Financial) - Share prices closed higher, led by Aker Yards, with investors viewing the stock as undervalued compared with Asian peers, and by Frontline and Revus Energy.
The OSEBX Benchmark index closed 0.23 points higher at 506.12 and the OSEAX All Share index rose 0.98 points to 580.16.
Total turnover amounted to 14.70 bln nkr.
The Norwegian market reacted negatively to Wall Street's lower opening, brokers said.
Aker Yards closed 1 nkr higher at 104 as investors acted on the view that its shares were cheaper on valuation grounds in relation to Asian sector peers, dealers said.
'I believe that it's mostly driven by brokerage houses which have seen research released recently which indicated that Aker Yards was significantly underpriced compared with Asian yards,' said Orion Securities analyst Alex Solovjov, who has a 'buy' rating on the stock with a price target of 117 nkr.
'But it's not only about Asian yards being more expensive. The company is really attractive,' he added.
Aker Kvaerner shed 1.5 to 150, while Tomra Systems added 1.3 to 55.3.
Frontline rose 4 to 276. Broker Fondsfinans issued a bullish report and upgraded its share rating on the stock to 'buy' from 'sell' with a price target of 350 nkr, according to dealers.
The broker's analyst said the outlook for Frontline's market was very positive, which would lead to better bottom line profit in the coming quarters.
'We have become more bullish on the oil market. We think that oil demand is going to pick up from the second half and OPEC will have to increase production,' he said.
Revus Energy was up 2 at 71.5 after announcing it has agreed to sell a 15 pct interest in Norway's production license 274 - which includes the Oselvar discovery - to peer Noreco for an undisclosed sum.
Songa Offshore fell 1 to 57.75. The group has agreed to loan its Songa Mercur rig to offshore contractor Santos in a deal worth 81 mln usd, after the original agreement with Chevron Australia was terminated due to late delivery of the rig.
Norsk Hydro rose 0.5 to 224, Statoil added 2.75 to 178, Petroleum Geo-Services was up 0.25 at 163.25 Seadrill rose 0.5 to 131 and Stolt-Nielsen was up 3 at 190.
Yara International was 1.75 lower at 183.75, after a reluctance among investors to push the stock to new all-time highs outweighed a bullish research note from Carnegie, dealers said.
Carnegie reiterated its 'outperform' recommendation on Yara International on valuation grounds and on an improving outlook.
Norske Skog fell 2.5 to 90.1.
Schibsted added 4 to 291. The group's Swedish newspaper, Aftonbladet, is to cut costs aimed at saving 50 mln skr in 2007 and an additional 40 mln skr in 2008.
The Norwegian media group said that, as a result of the programme, the firm will book a restructuring charge of approximately 50 mln skr in the third quarter.
Orkla was down 0.25 at 108.
Hafslund B shed 1.5 to 142.5 and Renewable Energy Corporation fell 1.5 to 216.5 on profit-taking after rising over recent sessions.
Among other stocks traded today, Telenor fell 0.75 to 114.75, Tandberg was down 2.75 to 128.75, Storebrand shed 0.6 to 92 and DnB NOR closed 0.6 lower at 78.6. michael.delaine@thomson.com mdl/lam COPYRIGHT Copyright AFX News Limited 2007. All rights reserved. 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.
© 2007 AFX News
