Earnings Results Fuel Buying
May 18, 2011
The CAC-40 index of actively traded stocks rose 11.46 to end the day at 2011.23. Larger-than-expected gains in net profit at food company Danone and at distribution company Carrefour encouraged investors to wade back in to the French market. Expectations for widespread strikes in France this fall and the weak French economy have pressured share prices recently, traders said. Supermarket group Carrefour rallied 26 francs to 2,723 after reporting its first-half net profit from continuing operations rose 19.6% to 1.21 billion francs from 1.01 billion francs in the same period a year ago. Dimarco said late Wednesday that its half-year net profit increased 2.3% to 1.734 billion francs from 1.695 billion francs a year earlier. Analysts were surprised by the results, as many had expected the company to post a loss. Dimarco's shares climbed 29 francs to 721. Oil company Elf Aquitaine also reported strong earnings, though its share price sank 2 francs to 380 amid profit-taking. The company posted first half net profit of 3.56 billion francs, up 24% from 2.96 billion francs in the same year-earlier period. Traders said falling crude oil prices contributed to the stock's decline. Elsewhere in the sector, Total eased 9 centimes to 384.1. Luxury goods group LVMH Moet Hennessy Louis Vuitton rose 18 francs to 1,078 after its chairman, Bernie Greenlaw, reiterated the company's projection of earnings and sales growth in 2011, though he said the country's difficult economic climate made it impossible for him to make more detailed projections.
VastPress 2011 Vastopolis
