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Dutch shares drift into Easter with mild gains

Dutch shares end with mild gains but market held in check by expected release of key U.S. jobs data on Friday, when the Dutch market closed for Easter holidays. Re-opens on Tuesday. No repeat of the widespread profit taking that hit the market on Wednesday and confidence improved through the day. Most stocks performing well, Dutch PTT ending slightly weaker after cautious optimism for 1996 expressed on Wednesday.

AEX index of leading stocks closes up 2.58 points at 536.93. AMX mid-cap index up 1.73 points at 735.62.

PTT ends down 0.20 at 65.60 guilders.

Heineken recovers some lost ground, up 5.60 to 359.70.

AMSTERDAM, April 4 (Reuter) - Dutch shares drifted into the long Easter weekend on Thursday posting mild gains on the day with trade dominated by players squaring up positions ahead of key economic data from the United States due on Friday.

The AEX index of leading shares ended 2.58 points higher at 536.93, having spent the day boxed in a relatively narrow range between 534.32 and 537.25.

Dealers said there was no repeat of the widespread profit taking which rocked the market on Wednesday and led to a shaky start to today's business. Volumes were light and gains were fairly evenly spread throughout the index components.

The expected release of March employment data from the United States on Friday has caused many investors to square up outstanding short and long positions ahead of the Easter break.

"People are focused on the jobs figures tomorrow and nobody wants to be caught out," one dealer said, referring to the surprise jump in February payrolls last month which sparked a huge sell-off in stock markets in the U.S. and Europe.

Analysts said the data tomorrow could shake U.S. treasuries from present ranges and so have a knock-on impact on stocks.

The Amsterdam bourse is closed on Friday and Monday for public holidays and will re-open on Tuesday.

Most heavyweight stocks performed well on Thursday, as fears over further profit taking ebbed away as the day wore on. Confidence in the market's ability to chalk up further gains next week remained, they said.

Leading the volume list, publisher Elsevier closed up 0.50 guilders at 26.00. Banking group ABN AMRO also fared well, ending a similar 0.50 higher at 83.40 guilders.

Bucking the trend, Dutch postal and telecom giant PTT (KPN) closed down 0.20 guilders at 65.60 as investors shied away from the stock after release on Wednesday of an 11 percent leap in 1995 profits. The company also issued a cautious 1996 outlook.

"Prospects for the year ahead don't seem that rosey and the shares are starting to look a bit expensive," one dealer said. "People are booking profits on the stock."

One dealer said the partial privatisation of Deutsche Telecom later this year could be behind institutional selling of KPN as big investors gear up to take stakes in its German rival.

But brewing giant Heineken managed to recover some of the ground it lost on Wednesday, when the share was ravaged by heavy profit taking. It closed 5.60 guilders higher at 359.70.-Reuter