European shares pegged back by Portuguese worries
* Portugal's PSI-20 market falls for 4th session
* FTSEurofirst 300 up 0.2 pct, steadying after Thursday drop
* Take more defensive approach - Sunrise Brokers strategist
* French telecom stocks boosted by merger moves
By Sudip Kar-Gupta
LONDON, May 16 (Reuters) - Portugal's stock market fell for a fourth straight session on Friday on concerns over the country's economy, preventing broader European equity indexes from making much progress.
The pan-European FTSEurofirst 300 index edged up 0.2 percent to 1,360.05 points in late session trading, steadying after a 0.8 percent fall in the previous session that had knocked the index down off 6-year highs.
The euro zone's Euro STOXX 50 index also rose 0.2 percent to 3,168.80 points but Lisbon's benchmark PSI-20 index fell 0.6 percent, following on from declines earlier in the week including a 2.7 percent drop on Thursday.
Traders said the Lisbon market was hit by a 6 percent drop in Portuguese bank Banco Espirito Santo after it announced a discounted share issue to raise capital. Continuación...