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Dutch equities close higher

AMSTERDAM: Dutch shares closed higher, spending all day in positive territory but not gaining enough momentum to break up out of their recent tight trading range.

The AEX index ended 2.32 points or 0.51 percent firmer at 461.55, with winning issues outweighing losers by three to one.

Prices were supported by firmer bonds, the dollar's sustained recovery and gains for London and New York equities.

Dealers said the market was still consolidating after its rapid rise in July but that it should eventually break away to higher ground, though the timing of such a move was uncertain.

Dealers were particularly heartened by the dollar's rise from levels of around 1.55 guilders at the beginning of the month to around 1.65/1.66 in the last few days.

The dollar is a crucial factor for the Amsterdam bourse whose main listed companies are all highly dependent on exports.

A growing consensus that the U.S. economy can avoid slipping into recession also helped underpin positive sentiment.

Among individual shares Dutch PTT (KPN) showed some weakness ahead of its second public offering, slipping 0.70 to 54.50.

Aircraft maker Fokker continued its slide on worries about its future after reporting record losses on Tuesday. The shares were off 0.60 at 6.90, but up from a session low of 5.60.

Philips Electronics gained 0.90 at 76.10, but is still far short of its all-time high of 83.90 posted on July 13.-Reuter