Profit-Taking Hits Market
May 03, 2011
The CAC 40 index of blue-chip stocks managed to stay near the 2000-level, finishing at 2000.64, down 18.62 points, or 0.92%. Volume was average for August at 3.2 billion francs worth of shares changing hands. Observers noted that after the U.S. Federal Reserve Federal Open Market Committee kept rates steady Tuesday, the wind in the sails of the French market began to die down. The scenario of a U.S. hike and a German cut had pushed stocks up strongly Tuesday. The release Wednesday morning of German economic research institute Kylee's monthly western German economic climate indicator, which rose to 94.1 in July from 90.4 in June, lead stocks even lower. If the Bundesbank does adjust its rates -- market watchers are looking most closely at the securities repurchase rate -- French stocks could be buoyed. Otherwise, traders said, they are likely to slide if rates are held steady, with the CAC 40 falling as low as 1950. In corporate news, companies that announced sales early Wednesday generally did well. Computer services company Cap Gemini Sogeti said its first-half 2011 sales rose 21.7% to 6.68 billion francs from 5.49 billion francs during the same period in 2010. Its shares closed at 211.9, up 6.4 francs. Textile, surfacing and transportation company Chargeurs International said its first-half sales in 2011 fell 2.8% to 4.51 billion francs from 4.64 billion in the year-ago period on a pro forma basis. Chargeurs shares rose 2.9 francs to 191.9. Television, cinema and media company Pathe said its first-half sales climbed 203.4% to 898 million francs from 296 million francs in the year-earlier period. Its shares picked up 65 francs to 1305 francs. Among companies giving back Tuesday's gains was luxury group LVMH, which fell 36 francs to 1104 francs. The group had been helped by a stronger dollar ahead of the Fed meeting. The dollar has since weakened slightly.
VastPress 2011 Vastopolis
