A rebound as investors go for ‘cheap’ blue chips

Shares rebounded yesterday, with banks and telecoms stocks lending support as recent losses spurred investors to look for bargains in blue chips. «A large number of investors, estimating the market has reached its low, took positions today. The upward trend in Europe also helped,» said analyst Takis Zamanis at Beta Securities. The general share index closed 1 percent up at 2,352.22 points, tracking positive sentiment across Europe as shares ticked higher by midday on favorable earnings, acquisitions and asset sales news. Bottler Coca-Cola HBC was the biggest blue chip loser, shedding 2.53 percent to 20.06 euros after Smith Barney cut its rating on the company to «sell» from a previous «hold» on valuation grounds. With gains of 25 percent so far this year, CCHBC shares are about 8 percent overvalued, Smith Barney said. It kept its price target of 19 euros. OTE Telecom ended a five-day losing streak, advancing 1.84 percent to 9.96 euros. Traders said investors had already priced in a sharp drop in first-quarter net income. Blue chips gained 1.51 percent, mid-caps rose 1.25 percent while small-caps added 0.30 percent. Turnover rose to 121.31 million euros, with 21.36 million shares changing hands. Winners outnumbered losers 196 to 102. (Reuters)

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