* FTSEurofirst 300 index up 0.7 percent
* Food producers add most points to index, led by Nestle
* Banks in focus after results
By Christoph Steitz
FRANKFURT, Feb 19 (Reuters) - European shares were higher on
Thursday, with food producers adding most points to the index,
as Nestle <NESN.VX>, the world's biggest food group, posted 2008
results and beat sales forecasts.
At 0933 GMT, the FTSEurofirst 300 <> index of top
European shares was up 0.7 percent at 768.70 points, having
fallen 0.3 percent on Wednesday. The index is down 7.6 percent
so far this year.
"The basic data on the real economy remains extremely dire,
although there are some rays of lights such as Nestle showing
that consumption in Europe is not as bad as feared yet," said
Commerzbank strategist Hans-Juergen Delp.
"However, it is only a matter of time until the recession
will fully hit households," he added.
The DJ Stoxx food & beverages index <.SX3P> was the top
sectoral gainer, up 2.5 percent.
Shares in Nestle rose 4.8 percent after the company beat
forecasts with underlying sales growth of 8.3 percent in 2008
and was cautiously upbeat for 2009. []
"The results were strong ... well above consensus on the
top-line ... and margins," Sanford C. Bernstein analyst Andrew
Wood wrote, adding that the company's 2009 guidance "seems to be
well ahead" of the current consensus.
Across Europe, the FTSE 100 index <>, Germany's DAX
<> and France's CAC 40 <> were up 0.8 percent to 0.9
percent.
FOCUS ON BANKS
Banks were also up with UBS <UBSN.VX> gaining 4.7 percent
after the Swiss company said it agreed to pay $780 million in a
deal to resolve fraud charges that it assisted rich Americans to
evade taxes. [] []
BNP Paribas <BNPP.PA>, too, rose 3.1 percent. The company
posted a fourth-quarter net loss that was in line with analyst
expectations, and cut its dividend. []
Shares in Swiss Re <RUKN.VX> added 0.9 percent, after it
posted a 864 million Swiss francs ($736.6 million) net loss for
2008. []
"All in all, results are terrible in absolute terms but at
least expectations have not been undercut," LBBW said in a note,
referring to European financials.
AXA <AXAF.PA> led decliners and was down 6.3 percent after
the company said 2009 would be another tough year for Europe's
second-biggest insurer. []
"AXA will most likely have to strengthen the capital base
should financial markets fail to stabilise. The outlook for
earnings remains weak and capital concerns will persist in our
view and we remain cautious on the stock despite the low
valuation," Cazenove said in a note.
