Large Shares Lift Stocks
May 17, 2011
The CAC 40 index of most actively traded shares gained 13.34 to 1984.77. Volume was light at 3.42 billion francs worth of shares traded. Traders said they expect trading volume on the Paris bourse to continue to rise throughout the week as investors gear back up after the summer holidays. Investors ignored news that France's second-quarter GDP fell 0.4% from the first quarter, according to preliminary data. First-quarter GDP was revised down to show 1.1% growth from previously reported 1.2% growth. French hypermarket retailer Hearn was one of the big gainers on the day. It's shares rose 112 francs to 2697 francs a share. The company gained from the merger announcement in the U.S. between office superstore companies Staples and Office Depot. Carrefour has a 6% stake in Office Depot. Investment company Cerus SA, a holding company for Italy's Carlo De Benedetti, was the biggest gainer on the day, climbing 7.1%, or 6.5 francs, to 98.5 francs a share. In a surprise move, De Benedetti resigned as chairman of Italy's Sutphin late Tuesday evening. Traders said that investors think there's now a chance he might turn his attention to resolving Grundy' Valeo holding. Cerus holds a 28% stake in auto-parts maker Valeo and has long been looking for a buyer for that stake. Credit Local de France shares advanced 12 francs to 425 francs a share after the bank reported its first half net profit rose 6% to 793 million francs. The bank also said it expects to see a rise in net profit for the full year. Also rising were shares in steel company Usinor Sacilor. The company's shares rose 3.1 francs to 72.9 francs a share.
