* FTSEurofirst 300 index closes up 1.4 pct
* Holcim, Ahold gains after results
* Banks, commods higher
By Joanne Frearson
LONDON, Aug 20 (Reuters) - European shares closed higher on
Thursday with construction stocks gaining after Holcim <HOLN.VX>
results pleased investors, while banks and commodity stocks
performed well.
The pan-European FTSEurofirst 300 <> index of top
shares closed up 1.4 percent at 944.94 points. The index has
risen more than 46 percent from its lifetime low on March 9 as
investors have become more confident over the prospects of
recovery.
"The good performance today is partly linked to
better-than-expected numbers from Holcim and Ahold <AHLN.AS> ...
as well as the strong rebound in China, which has had quite a
setback," said Heino Ruland, strategist at Ruland Research.
Sentiment improved after Chinese stocks <> surged 4.5
percent, posting their second biggest daily percentage gain of
the year, as modest signs of official support for the market
helped to trigger technical buying after a 20 percent dive in
the two weeks up to Wednesday's close.
Construction stocks were among the top performers. Cement
maker Holcim <HOLN.VX> gained 5.7 percent after it said the
government stimulus packages in the U.S. and Europe would boost
the construction industry next year after the downturn in the
United States eased in the second quarter. []
Vinci <SGEF.PA>, Lafarge <LAFP.PA> and CRH <CRH.L> were up
3.3 to 4.7 percent.
Dutch supermarket group Ahold <AHLN.AS> was 3.9 percent
higher after it reported second-quarter profit above forecasts,
as it increased market share and clamped down on costs,
convincing investors of its operational strength. []
Banks added the most points to the index.
UBS <UBSN.VX> rose 4.5 percent after Switzerland sold its
stake in the bank, at the top end of its price range, a source
said, making a profit from last year's rescue deal.
[]
Banco Santander <SAN.MC>, BNP Paribas <BNPP.PA> and Nordea
Banks were up between 1.4 to 3.2 percent.
OILS TRACK CRUDE HIGHER
Energy shares were higher as crude <CLc1> steadied at around
$72 a barrel after a drawdown in U.S. inventories.
BG Group <BG.L>, BP <BP.L>, Royal Dutch Shell <RDSa.L> and
Total <TOTF.PA> were between 1.4 to 2.5 percent higher.
Miners gained, with Rio Tinto <RIO.L> up 1 percent as it
positioned itself for a comeback after posting a record drop in
half-year profit and selling off shares and assets to slash
debt. []
Anglo American <AAL.L>, Antofagasta <ANTO.L>, BHP Billiton
<BLT.L>, Eurasian Natural Resources Corporation <ENRC.L> and
Xstrata <XTA.L> were up between 1.9 to 5.3 percent.
Some strategists remained cautious, with stocks paring gains
earlier after the number of U.S. workers filing new claims for
jobless benefits unexpectedly rose last week as companies
continued to cut payrolls amid uncertainty over the economic
outlook. []
Initial claims for state unemployment insurance benefits
rose 15,000 to a seasonally adjusted 576,000 in the week ended
Aug. 15 from 561,000 the prior week, the U.S. Labor Department
said.
"Chart analysts would say global equity indexes are looking
very overbought," said Jeremy Batstone-Carr, strategist at
Charles Stanley. "The breadth of the rally is encouraging the
optimists to believe this is the real thing.
"I would argue that equity markets' performance is in line
with a V-shaped recovery, but the economic recovery has been
muted at best. Earnings have beaten forecast, but the top line
has been disappointing. How long can companies pull off this
trick of increasing earnings by cutting costs?"
Across Europe, the FTSE 100 <> index was up 1.4
percent, Germany's DAX <> was 1.5 percent higher and
France's CAC 40 <> was up 1.6 percent.
(Additional reporting by Brian Gorman; editing by John
Stonestreet)
