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Dutch shares

end steady

undertone firm

AMSTERDAM: Dutch shares closed mixed on Friday after a quiet session with investors showing nerves after Thursday's volatile Wall Street performance.

Dealers say the undertone remains bullish especially after the Dutch central bank announced a key money market rate cut late on Friday. "It's positive, but it's late on Friday and I wouldn't really have expected an instant reaction,' one dealer said. "Next week a record high is absolutely possible."

The AEX index closed 1.36 points lower at 541.90, back up from a session low of 539.81. "There won't be a problem going above 550 next week," the dealer said.

"A lower short term interest rate makes more people want to invest in the stock market. It will support the market in the future. This rally is certainly not over," he said.

The AEX shares index has surged from 485 late last year and earlier this week set its all time trading high of 545.41 as well as its closing high of 544.77.

Dealers said a strong dollar was also helping sentiment, while today's US March consumer price index data contained no unpleasant surpirses. "We have help form the dollar," said a dealer. "The dollar's above 1.68 (guilders) and the market will have some new support from that."

Dealer said the whipsaw session yesterday on Wall Street, where the Dow at one point dipped 70 points before closing steady, have caused some concern.

He said it was extremely difficult to judge the mood on Wall Street, where yesterday's turnover was one of the highest on record. "We all know the Dow has come down a lot, but is this the bottom of a correction or the end of new highs?" By the Amsterdam close the Dow was around 20 points higher.

Dealers said today's AEX performance was encouraging. "We're feeling pretty good about this market. It was down quite a bit earlier on and ended not too badly," said one.

Shares recently favoured for their overseas expansion prospects met stiff profit-taking, while financials came under pressure but cyclicals found support.

"People are moving from high growth stocks to the underperforming sectors like the cyclicals," said a dealer. Heineken lost 6.00 guilders to 366.00 and Ahold fell 1.60 guilders to 85.00 guilders. Among the cyclicals DSM finished 60 cents up at 159.60 guilders.(NG lost 1.20 to 118.90 guilders.

Other financials saw ABN AMRO slip 1.10 guilders to 82.30 although AMEV ended unchanged at 119.00 guilders, supported by news yesterday of higher 1995 net profits.

Transport group Frans Maas closed 3.30 guilders higher at 61.80, boosted by its announcement yesterday of a return to profit in 1995 and its forecast of significantly higher net profit from ordinary operations in 1996.

Royal Dutch gained 1.60 guilders to 246.30 helped by the strong dollar and rising energy prices.-Reuter