Energy stocks, HSBC lead European shares higher

By Toni Vorobyova

LONDON, May 12 (Reuters) - European shares gained by midday on Monday, paring some of the losses from the previous session, as heavyweight energy stocks were supported by high oil prices and banks benefited from HSBC's first-quarter results.

Shares in HSBC (HSBA.L: Quote, Profile, Research, Stock Buzz), Europe's biggest bank, gained 1.9 percent after it posted a year-on-year rise in quarterly profit as growth in Asia and elsewhere helped counter a $3.2 billion bad-debt charge related to its U.S. consumer finance business.

Some analysts had expected a quarterly loss. HSBC shares were the biggest positive weight on the FTSEurofirst 300 index of top European shares.

By 1027 GMT the index was up 0.5 percent at 1,349.74 points, after posting its first weekly loss in a month last week.

Energy stocks also helped push up the index, with France's Total up 1.8 percent (TOTF.PA: Quote, Profile, Research, Stock Buzz) as the oil price remained in sight of Friday's record highs CLc1.

"The high oil price is helping the oil sector and the commodity sector is also doing well, but the more the oil price rises, the more it becomes a problem for the overall economy so it's not universally bullish," said Ronan Carr, equity analyst at Morgan Stanley.

The FTSEurofirst has recovered 12.6 percent since hitting a 2-1/2 year low in mid-March, although the index is still 10 percent lower than at the start of the year.

On Monday, gainers on the index outnumbered losers by nearly two to one, with several stocks benefiting from broker upgrades.