European shares edged higher on Wednesday for a second session with telecom stocks leading the way after France Telecom's dividend topped forecasts. Europe's second largest integrated fixed and mobile operator added 4 percent as it also vowed to continue slashing costs and debt as part of a three-year growth plan. Telecom Italia and Deutsche Telekom were also strong with the DJ Stoxx European telecoms index adding 1.2 percent to be Europe's biggest sectoral gainer after underperforming so far in 2005, according to Reuters. By 1040 GMT, the pan-European FTSEurofirst 300 index was up 0.12 percent at 1,142 points, having peaked at an intraday high of 1,147. "France Telecom should give the sector a boost for the rest of the week," said a trader. "It is one of the cheapest large cap stocks in the sector and the news should make the market see the firm has a sensible strategy." Oil around $58 a barrel from highs above $60 on Monday helped support the market although oil majors Royal Dutch and Shell were down 1.3 and 1.1 percent a day after shareholders agreed to end their dual-listing. --More 2358 Local Time 2058 GMT
