STOCKS NEWS EUROPE-SMA Solar rises as gains in peer buoy sector

Shares in Germany's largest solar company SMA Solar rise more than 15 percent to their highest level in two years, with traders pointing to a rise in smaller peer SolarWorld (Other OTC: SRWRF - news) as showing improved sentiment for the ailing sector.

"Solar (Copenhagen: SOLAR-B.CO - news) stocks are recovering from their trough," a trader says.

The trader highlights a 14 percent surge in the shares of SolarWorld, which rises after the group says it has completed its financial restructuring, as evidence that investors' views on the sector are improving.

SMA Solar shares now trade at about 43 euros, which is still much lower than their all-time high of 106.7 euros reached in early 2010.

German solar stocks are slowly recovering from a slump caused by fierce competition from Asian peers, plunging government subsidies in Europe as well as falling prices for solar panels, cells and other equipment that have driven many sector players out of business.

Reuters messaging rm://christoph.steitz.thomsonreuters.com@reuters.net

rm://daniela.pegna.thomsonreuters.com@reuters.net