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Dutch shares end at record

AMSTERDAM: Dutch shares closed at record high, but back from all-time peaks of 465.30 points, fuelled by by a firmer dollar and hopes for lower interest rates following lower than expected German M3 data.

A softer Wall Street opening and second thoughts on interest rates left the index 0.61 up at 464.04, for its second consecutive record high close.

Dealers said the index of 25 leading Dutch shares is nearing a short term ceiling and will probably not rise significantly more this year if bond market yields hold firm.

"Investors are suffering from a bit of vertigo," one said.

Michael Molenaar, head of research at Robeco Effectenbank, believes the rise of the dollar and the potential for lower interest rates outweigh some recent earnings disappointments from Dutch companies.

"We have two positives in the dollar and interest rates and one negative in the earnings outlook," said Molenaar.

But with slightly higher interest rates later in the year, the index is seen capped to 450/460, said MeesPierson's head of equity research, Erwin Huijboom.

Volume was moderate but Aegon and ABN AMRO Bank stood out amid rumours the latter was selling MeesPierson to the insurer.

ABN AMRO was up 0.50 guilders at 63.10 after a hefty 1.8 million shares changed hands. Aegon shed 1.80 guilders to 57.10 after 1.5 million shares traded in an otherwise quiet market.

ABN AMRO Bank, which publishes its second half year results on Friday, and Aegon dismissed the rumours.

Office equipment dealer Ahrend NV jumped to a new year high of 49.30 guilders, up 3.20, after it published a 62 percent higher 1995 first half net of 21.1 million guilders, above 1994's full year net of 20.9 million.

Brewer Heineken gained by the long hot summer, adding 2.80 guilders at a new record closing high of 255.50 guilders.

Philips Electronics chalked up a gain of 1.30 at 77.60 guilders in reasonable volume, helped by the dollar and after announcements it is pondering a public bid for small Pie Medical, which rocketed by 3.70 guilders to 16.10 guilders.-Reuter