Finnish telecommunications group Nokia on Tuesday knocked BP Amoco out of the top spot to become Europe`s highest valued company, according to the Dow Jones index that tracks Europe`s 50 largest stocks.
With a market capitalization of 207 billion euros (dlrs 212 billion), Nokia has a 5.90 percent weighting in the Dow Jones STOXX 50 index, ahead of BP Amoco`s capitalization of 189 billion euros (dlrs 194 billion) and a 5.38 percent weighting.
On the Helsinki Stock Exchange, Nokia`s shares peaked at 172.10 euros (dlrs 176.20) Tuesday, before closing at 167.15 (dlrs 171.14) - up 8.5 percent on Friday`s closing rate. The exchange was closed Monday for a holiday.
Analysts said Nokia shares, which soared 20 percent in the past two days, are likely to remain in demand next year, but will be hard pushed to meet the meteoric rise seen during 1999.
On Friday, Nokia helped push the HEX general index over the 12,000 points mark. On Tuesday, the HEX index hit 12,889 points, again largely due to Nokia.
The phenomenal rise in the value of the Finnish company, which is the world`s largest mobile phone maker, is likely to boost its share price further, according to Petri Korpineva, Nokia analyst at Finland`s Leonia Bank.
"If you are a manager of a major international investment fund, you surely want to include the shares of Europe`s most valuable company in your portfolio," Korpineva said.
Also, Nokia will be able to benefit from its heightened image by using its own shares "as a powerful financing tool" when making acquisitions, Korpineva said.
The stock`s recent run-up followed statements by Nokia`s chief executive officer Jorma Ollila on Friday that projected sales growth at 30 to 40 percent next year - and an additional 25 and 35 percent, respectively, for 2001 and 2002.
This year, Nokia has almost tripled in value from 58.20 euros in Helsinki at the start of the year. Analysts expect Nokia shares to continue moving higher, although growth rates may be slower.
Share