Nov. 22 (Bloomberg) -- European energy stocks rose, led by BP Plc and Total SA. Oil gained for a second day, rebounding from last week's five-month low, amid expectations for colder U.S. weather.

``We are getting into a stage of increasing demand for oil, so energy stocks will be back in the forefront,'' said Hector Robello, an analyst at Banca Privada D'Andorra SA in Andorra, which manages $526 million. ``One must not forget this sector.''

STMicroelectronics NV and Infineon Technologies AG fell amid concern about tougher competition for chipmakers. Nestle SA dropped after recalling two milk brands in Italy.

The Dow Jones Stoxx 600 Index added 0.1 percent to 300.97 at 11:23 a.m. in London, set to extend yesterday's 3 1/2 year high. The Stoxx 50 added 0.2 percent, while the Euro Stoxx 50, a measure for the 12 countries using the euro, fell 0.1 percent.

Airlines including British Airways Plc rose as EasyJet Plc, Europe's second-biggest low-cost carrier, posted earnings that beat estimates. Adecco SA jumped after billionaire Klaus Jacobs took control of the Swiss temporary-staffing company, becoming its chief executive and biggest shareholder.

Scottish Power Plc tumbled after E.ON AG ended talks to buy the U.K. utility, while DaimlerChrysler AG slid as Deutsche Bank AG sold some of its stock in the carmaker.

National indexes rose in 12 of the 18 western European markets. Germany's DAX fell less than 0.1 percent, while France's CAC dropped 0.2 percent. U.K.'s FTSE 100 rose 0.3 percent.

BP, Total, OMV

BP, Europe's biggest oil company, gained 1.4 percent to 662.5 pence. Total, Europe's No. 3 oil company, added 1 percent to 221.2 euros in Paris.

Crude oil for January delivery rose as much as 0.6 percent to $58.02 a barrel in New York. The Stoxx 600 Oil and Gas index was the best performer among the 18 industry groups, gaining 0.4 percent.

Oil prices have fallen about 16 percent since peaking at a record $70.85 on Aug. 30. The Stoxx 600 Oil and Gas index has still added 36 percent this year.

OMV AG, central Europe's biggest energy company, jumped 3.4 percent to 46.34 euros in Vienna, rising for the fourth session in a row. OMV said third-quarter profit tripled, boosted by the purchase of Romania's SNP Petrom SA, soaring oil prices and high refining margins.

Chipmakers, Adecco

STMicroelectronics, Europe's No. 2 chipmaker, declined 1.1 percent to 14.59 euros. Infineon, Europe's biggest semiconductor maker, dropped 1.9 percent to 7.77 euros.

Asian chip companies fell today, paced by Toshiba Corp. and Hynix Semiconductor Inc., following yesterday's announcement by Intel Corp. and Micron Technology Inc. of a new venture to make flash-memory products.

Intel and Micron are targeting the fastest-growing segment of the $17.3 billion market for flash memory, which stores music and video files in handheld gadgets. Apple Computer Inc., which already granted the companies a contract for iPod chips, may encourage competition to seek lower prices from suppliers.

``The venture between Intel and Micron increases competition in a market where margins are already shrinking,'' said Simone Freschi, an equity and derivatives trader at Banca Monte dei Paschi di Siena SpA in Siena, Italy.

Nestle, the world's largest food company, dropped 0.4 percent to 396.75 Swiss francs. It said the Italian milk recall relates to a packaging chemical that posed no health risk.

Italian judicial authorities ordered the company to recall 30 million liters of baby milk because it was unfit for consumption, the news agency Ansa said earlier, without saying where it got the information.

EasyJet, Adecco

EasyJet soared 6.1 percent to 325.25 pence, a 20-month high. The airline said second-half profit rose 6.7 percent amid increased passenger traffic, more routes and cost cuts.

British Airways, Europe's third-largest airline, gained 1.5 percent to 312.25 euros. Ryanair, Europe's biggest discount airline, added 1.4 percent to 7.52 euros.

Adecco, the world's largest provider of temporary workers, jumped 5.3 percent to 59.75 Swiss francs, the biggest increase in the Stoxx 600. Adecco said co-chairman Klaus Jacobs will take sole control of the company, as Chief Executive Jerome Caille and co-chairman Philippe Foriel-Destezet step down.

Jacobs, a German-born billionaire, also agreed to buy 12 million Adecco shares from AKILA Finance, an entity controlled by Foriel-Destezet.

E.ON, EDF, Daimler

E.ON, Germany's largest natural-gas distributor, gained 2.4 percent to 80.24 euros, the steepest increase in the Stoxx 50. The utility said talks to take over Scottish Power have ended after a disagreement about the price.

Shares of Scottish Power, the U.K.'s fifth-largest energy provider, plunged 7.6 percent to 526 pence, the steepest slide in the Stoxx 600.

Electricite de France SA fell 2.1 percent to 31.32 euros in its second day of trading, dropping below the price at which stock was sold to individual investors and institutions. Money managers said the initial public offering was priced too high.

DaimlerChrysler, the world's No. 5 carmaker, dropped 1.6 percent to 43.41 euros. Deutsche Bank said it will sell 20 million shares in DaimlerChrysler to institutional investors.

Nokian Renkaat Oyj, the biggest Nordic tiremaker, dropped 6.3 percent to 10.47 euros, the second-steepest Stoxx 600 decline. That added to a 5 percent slide yesterday, when the company announced job cuts prompted by slowing demand.

Noora Alestalo, an analyst at Mandatum Stockbrokers, today lowered her recommendation on the shares to ``hold'' from ``accumulate.''

Roche Holding AG, the world's biggest maker of cancer drugs, added 1.2 percent to 195.8 Swiss francs. Citigroup Inc. increased its share-price forecast for the drugmaker by 21 percent to 260 francs.

To contact the reporter on this story: Martin Boer in Amsterdam at mboer1@bloomberg.net

Last Updated: November 22, 2005 06:32 EST