Weak Franc Plagues Market
May 10, 2011
The CAC 40 index of most actively traded French stocks closed at 2002.90, down 15.09 points. Volume was fairly light at 3 billion francs worth of shares. Traders said investors were shying away from the market as the franc continues to weaken against the mark. The franc lost ground Wednesday on disappointing French industrial production data for June, a weak dollar and worries about the government's ability to face down planned union protests. Reinsurance company Scor was in the spotlight Wednesday, boosted in heavy trading by recent consolidation in the industry. Traders said investors were also impressed by a 12.6% rise in second-quarter sales reported last week. Scor's shares rose 6 francs to 208 francs. Eyeglass maker Essilor gained ground on news it had entered into an agreement with U.S. sunglass maker Oakley. Essilor gained 52 francs, closing at 1005 francs. Insurer GAN continued to drop after its 97%-own real estate finance unit, UIC, said Tuesday it lost 758 million francs in the first half of the year. GAN's shares lost 1.4 francs to close at 123.6 francs. Amusement park and hotel group Euro Disney lost ground for the second straight day, but traders said they saw no news to explain the drop. Euro Disney's shares fell 40 centimes, ending at 11.05 francs a share.
