For investors looking to Europe for a more diversified portfolio from January 1st next, Credit Suisse First Boston has issued its inaugural Focus List with a list of 28 core-buy recommendations of British and continental European stocks.

The stocks are recommended on the basis of having a strong strategic franchise, generating high returns and being significantly undervalued.

The recommendations are: AdidasSalomon, Argentaria, Banco Santander, British Aerospace, Castorama, CGU, Deutsche Telecom, Diageo, Dixons, Endesa, Ericsson, First Group, Granada, Heidelberger Zement, Metsa-Serla, National Power, NatWest Bank, Nokia, Ocean Group, Roche, Sanofi, SEAT, Telecom Italia, Telefonica, Transgene, Unique International, Zeneca and Zurich.

All these companies have a strategic franchise and have been achieving an average investment of 16 per cent.