Lufthansa adds 1 percent

In Europe on Wednesday the FTSE Eurofirst 300 came within two points of a five and a half year high as it closed up 1.1 percent to 1,487.89.

Technology sectors saw gains on the session. SAP, the software group, was 1.6 percent higher to €40.25. Meanwhile, in the semiconductors sector, ASML gained 2.7 percent to €18.66.

Lufthansa added 1 percent to €20.89 in the wake of an announcement last Friday that it will sell its 50 percent stake in Thomas Cooke. Dresdner Kleinwort called the sale a move “in the right direction”, reiterating its “buy” recommendation on the air carrier and increasing its target share price from €20 to €21.60.

Sacyr Vallehermoso was 2.2 percent higher to €47.02 although JP Morgan began coverage by rating the Spanish builder at “underweight” and setting a target share price of €36, citing concerns about the purchase of a 20 percent stake in oil company Repsol and what it called a “very high” purchase price for road concession operator Europistas.

The Norwegian oil sector was mixed in the aftermath of an announced merger between Statoil and Norsk Hydro. While Norsk Hydro added 1.6 percent to NKr191, Statoil dropped 0.9 percent to NKr162.50 even though S&P reiterated its “strong buy” recommendation.

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