UPDATE 2-YIT says housing prices steady in Russia, Finland

* CEO says Russia housing prices holding up

* Finnish housing sales, prices remained steady

* Shares jump on comments, up 5.8 pct on the day (Adds further details, analyst's comment, Skanska)

By Eva Lamppu

HELSINKI, June 10 (Reuters) - Finnish builder YIT Oyj (YTY1V.HE) said on Wednesday that housing prices in its key Russian market had not dropped during 2009, while in Finland both activity and prices had held up, sending its shares higher.

"We said in March activity in the domestic housing market had picked up, and that pace has continued," YIT Chief Executive Juhani Pitkakoski told Reuters in an interview on Wednesday.

YIT shares were up 5.8 percent at 7.85 euros at 1221 GMT.

"That prices in Russia are not falling is actually a positive signal," a Helsinki-based analyst said, adding that YIT was also benefitting from good Russia news in the form of a strengthening of the rouble and rising oil prices.

Pitkakoski said he saw no need to lower flat prices in the Finnish market, noting there was no price bubble before the recession, builders had few unsold apartments, and low interest rates made apartment sales favourable.

Pitkakoski said that in Russia the firm was focusing on finishing already started projects.

"In Russia a large number of market players had halted their work," he said, adding prices for apartments in Russia had stabilised this year after a sharp fall in late 2008.

"Prices, according to our view, have not fallen," he said.

His comments came after Skanska (SKAb.ST), the Nordic region's biggest builder, said residential sales in Sweden and Norway continued to improve in the first five months of the year compared with the same period of 2008.

However, the firm, which reported an 11-percent drop in orders from the same period last year, said while it expected government stimulus packages to generate projects, it would not be enough for the company to reach its financial goal next year. [ID:nLA323078]

Pitkakoski said YIT had also seen the effects of government stimulus packages, mainly in increased project enquiries, and said improved Finnish consumer confidence had been reflected in residential sales and renovation work.

"(But) in the construction of office space there has obviously not been any change," he added. (Editing by Greg Mahlich)