Autos and miners help European shares to advance

lunes 18 de mayo de 2015 04:36 GYT

* Pan-European FTSEurofirst 300 index up 0.5 pct

* Autos, miners among top gainers

* Greek shares in focus

By Atul Prakash

LONDON, May 18 (Reuters) - European shares advanced in choppy trading on Monday, with Volkswagen leading the automobile sector higher following an upgrade from a major bank and miners gaining on an improving sector outlook.

The pan-European FTSEurofirst 300 index was up 0.5 percent at 1,580.69 points by 0917 GMT. However, Italy's FTSE MIB index fell 0.9 percent as several companies in the index traded without the attraction of their latest dividend payouts.

The STOXX Europe 600 Automobile and Auto Parts index rose 1.4 percent, the top sectoral gainer, helped by a 2.4 percent rise in shares of Volkswagen after Deutsche Bank saw an upside from efficiency gains at the company and hiked its target price to 280 euros from 230 euros.

The STOXX Europe 600 Basic Resources index rose 0.8 percent, helped by a rise in prices of key industrial metals and an improved sector outlook on valuation grounds.

"The valuation of mining companies relative to the overall market is well below the average of the last 15 years and we think that the picture has started to improve. The sector is likely to outperform in an environment where the market is looking for cyclical plays," Christian Stocker, equity strategist at UniCredit in Munich, said.   Continuación...