In­sur­ers help Euro­pean shares to bounce back

The Pak Banker - - 6BUSINESS -

Euro­pean eq­ui­ties ad­vanced on Tues­day af­ter a long week­end, with in­sur­ers lead­ing the mar­ket higher af­ter com­pa­nies such as RSA In­surance and NN Group rose fol­low­ing some bullish bro­ker com­ments.

The STOXX Europe 600 In­surance index was up 1.4 per­cent, the top sec­toral gainer. RSA In­surance rose 2 per­cent af­ter Deutsche Bank and Bar­clays in­creased their tar­get prices for the stock, while Dutch in­surer NN Group gained 2.2 per­cent af­ter HSBC added it to its "Europe Su­per 10" list. "We add NN Group be­cause it of­fers an at­trac­tive cap­i­tal re­turn in what we ex­pect to be an un­cer­tain top-down en­vi­ron­ment where we ex­pect sus­tain­able higher yield­ing as­sets to be very much in de­mand," HSBC an­a­lysts said in a note.

"We see it con­tin­u­ing to gen­er­ate high and sus­tain­able net cash flows to fund a com­pelling re­turn to share­hold­ers."

The pan-Euro­pean FTSEurofirst 300 index was up 0.7 per­cent by 0805 GMT af­ter fall­ing 1.5 per­cent on Thurs­day. Euro­pean mar­kets were closed on Fri­day and Mon­day due to the Easter holiday.

How­ever, the index is still down nearly 8 per­cent this year, with the FTSEurofirst strug­gling to come out of its re­cent nar­row trad­ing range.

"Trad­ing in the next few days is likely to be in­flu­enced by repo­si­tion­ing ahead of the end of the first quar­ter, pos­si­bly giv­ing stocks a tem­po­rary lift," Markus Hu­ber, trader at City of Lon­don Mar­kets, said.

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