(Updating with full report)
STOCKHOLM (Thomson Financial) - Stockholm shares closed sharply higher on a broad-based rebound from yesterday's falls with Ericsson leading the market higher following the company's strategy presentation to investors in London today.
The OMX Stockholm index closed up 2.08 pct at 379.36 points, while the OMX Stockholm 30 closed up 2.20 pct higher at 1,172.42. Turnover amounted to 23.617 bln skr.
Ericsson B closed up 5.31 pct at 25.78 skr. A trader in London said there have been some bearish analyst notes over recent days, so the shares are rallying on relief at the upbeat presentation.
'The market had been concerned that they might talk down numbers, so the retained outlook is being viewed positively,' he said.
A strategist in Stockholm pointed to Ericsson's comments about improved full-year cash conversion rates (from profits) as supporting the share price.
'Ericsson said it will improve its cash flow, and this is good since that is what they've been bad at,' he said.
Ericsson's CEO Carl-Henric Svanberg said the company has now achieved a market share of 45 pct in both the HSPA and GSM network markets, versus 35 pct a 'a few years ago'.
Among telecom operators, TeliaSonera closed up 1.40 pct at 54.25, and Tele2 B up 4.42 pct at 130 after the company said it has completed the previously announced sale of its Portuguese operations to Sonaecom SGPS for 16 mln eur in cash, following approval from the Portuguese Competition Authority.
Scania B was the other big winner closing up 5.32 pct at 158.50 aftre a positive capital markets day by German rival, and potential suitor MAN AG. Volvo B closed up 1.60 pct at 111.
The engineers all closed higher, with Sandvik up 3.16 pct at 130.50 and SKF B up 1.78 pct at 128.50.
Elekta B closed up 10.86 pct at 109.75 amid market rumours that Philips is mulling a bid for the medical technology group.
'Philips said they would like to make small acquisitions in this area so it makes perfect sense,' one London-based trader said.
In the construction sector Skanska B closed up 3.04 pct at 127.25, but is still down 8 pct on the week.
Saab B bucked the positive market closing flat at 154.50 after news that the Swedish Prosecutor Christer van der Kwast has started a preliminary investigation about suspected bribery in connection with leasing agreement for 14 Saab JAS Gripen fighters to Hungary.
Saab has denied any wrong-doing and said it is working closely with the prosecutor.
Elsewhere in the market the banks all closed higher led by Swedbank A, up 1.90 pct at 214.50, while Boliden closed up 0.94 pct at 134.50, SCA B up 2.93 pct at 123, and Investor B up 2.56 pct at 160.50. TFN.Stockholm@thomson.com sjr/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
