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European shares hit 29-mth closing high on miners

Published 02/07/2011, 12:32 PM
Updated 02/07/2011, 12:36 PM
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* FTSEurofirst 300 index closes up 1 percent

* Miners gain; Randgold Resources up on strong results

* Nokia rises on strategy revamp hopes

By Joanne Frearson

LONDON, Feb 7 (Reuters) - European shares rose on Monday to their highest close since September 2008, with miners gaining as copper hit a fresh record high on supply concerns and after Randgold Resources profit jumped.

The pan-European FTSEurofirst 300 index of top shares closed up 1 percent at 1,176.81 points. It also rose on Friday after a mixed U.S. nonfarm payroll report.

"Moving on from where it left off last week, I think the equity markets are focusing on the growth that is out there and are being supported by strong earnings," Mike Lenhoff, chief strategist at Brewin Dolphin, said.

"The markets are reluctant to give up any ground and the underlying trend is up."

Miners extended gains from the previous session as copper and tin hit record highs on supply concerns.

The STOXX Europe 600 Basic Resources rose 2.4 percent, while Randgold Resources gained 2.6 percent after the gold producer said it would raise its dividend 18 percent on the back of 43 percent higher full-year profit.

Xstrata, due to report on Tuesday, rose 3.6 percent, helped by bullish broker comment by Citigroup and Nomura. Top global miners were expected to report a doubling in profit for the December half, thanks to booming iron ore and copper sales.

TECHS GAIN

Technology stocks featured among the best performers, with the STOXX Europe 600 Technology rising 1.7 percent.

Nokia gained 2.8 percent as a delayed top of the range model finally started deliveries and hopes grew for a strategy revamp due later this week.

Chip designer ARM Holdings was 3.9 percent higher after Numis Securities raises its target price by 10 percent.

Looking at individual stocks, French bank Credit Agricole was up 4.4 percent after a report on the Les Echos website quoted a head of one of its parent regional banks saying the lender won't need to raise capital to meet Basel III rules.

"If this happens to be true, we see the share price skyrocketing to 14 euros," a Paris trader said in a note.

Across Europe, the FTSE 100 index gained 0.9 percent, Germany's DAX was up 0.9 percent and France's CAC 40 was 1.1 percent higher. (Reporting by Joanne Frearson; Editing by Dan Lalor)

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